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The United States Began to Pull Out of a Recession

Question 259

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The United States began to pull out of a recession in the spring of 1991. Unemployment fell, but inflation did not increase. What was the most likely cause of this?


A) Aggregate supply was increasing at a faster rate than aggregate demand.
B) Both aggregate demand and aggregate supply were decreasing.
C) Aggregate demand was increasing but aggregate supply was decreasing.
D) Aggregate demand was increasing at a faster rate than aggregate supply.

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