In a recessionary gap, the economy may encounter:
A) fast adjustment in factor prices.
B) expansionary monetary and fiscal policy to dampen the recessionary gap in the short-run.
C) higher wages.
D) lower money supply, lower price and higher real GDP.
Correct Answer:
Verified
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Q65: Expansionary fiscal policy:
A) decreases aggregate demand.
B) occurs
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A) to
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