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    Principles of Macroeconomics Study Set 7
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    Exam 7: Fiscal Policy
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    How Can an Inflationary Gap Be Closed
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How Can an Inflationary Gap Be Closed

Question 117

Question 117

Multiple Choice

How can an inflationary gap be closed?


A) By an increase in aggregate demand.
B) By an increase in government spending.
C) By an increase in the price level.
D) By an increase in taxes.
E) By a decrease in aggregate supply.

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