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(Figure: Inflationary and Recessionary Gaps) Use Figure: Inflationary and Recessionary

Question 174

Multiple Choice

(Figure: Inflationary and Recessionary Gaps) Use Figure: Inflationary and Recessionary Gaps. A movement from AD1 to AD3 could be caused by:
(Figure: Inflationary and Recessionary Gaps)  Use Figure: Inflationary and Recessionary Gaps. A movement from AD1 to AD3 could be caused by:   A) increased government purchases B) increased government purchases. C) decreased government transfers D) decreased government transfers. E) higher tax rates. F) higher tax rates G) decreased government purchases H) decreased government purchases.


A) increased government purchases
B) increased government purchases.
C) decreased government transfers
D) decreased government transfers.
E) higher tax rates.
F) higher tax rates
G) decreased government purchases
H) decreased government purchases.

Correct Answer:

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