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Which of the Following Reflects a Coordination Problem in Aggregate

Question 93

Multiple Choice

Which of the following reflects a coordination problem in aggregate demand?


A) Congress approves increases in government spending that are insufficient to stimulate aggregate demand.
B) Congress wants to maintain balanced budgets during a recession rather than running budget deficits.
C) Congress increases spending in areas that are already at or near full-employment.
D) Automatic stabilizers shift the budget toward a surplus during an expansion and a deficit during a recession without Congressional action.

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