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The Following Question Are Based on the Following Diagram

Question 31

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The following question are based on the following diagram:
The following question are based on the following diagram:    -Which of the following events would correct the condition shown? A)  an increase in spending by the private sector B)  a decrease in potential output because of a natural disaster C)  an increase in wages and other input prices D)  an increase in the money supply by the government E)  an increase in government spending accompanied by a tax cut
-Which of the following events would correct the condition shown?


A) an increase in spending by the private sector
B) a decrease in potential output because of a natural disaster
C) an increase in wages and other input prices
D) an increase in the money supply by the government
E) an increase in government spending accompanied by a tax cut

Correct Answer:

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