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During the Late 1960s,real GDP Increased,unemployment Fell,and the Inflation Rate

Question 126

Multiple Choice

During the late 1960s,real GDP increased,unemployment fell,and the inflation rate started to rise.Which would have been the appropriate federal government policy combination to improve economic performance by lowering the inflation rate?


A) increase government expenditures,decrease taxes,increase the quantity of money
B) increase government expenditures,decrease taxes,decrease the quantity of money
C) decrease government expenditures,increase taxes,decrease the quantity of money
D) do not change government expenditures or taxes ,increase the quantity of money
E) increase government expenditures,decrease taxes,do not change the quantity of money

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