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Analysis Indicates That the Economy Is in a Recessionary Gap

Question 144

Multiple Choice

Analysis indicates that the economy is in a recessionary gap.Which of the following is the least appropriate policy mix in this situation?


A) a budget surplus and expansionary monetary policy 
B) a budget deficit and expansionary monetary policy 
C) a budget deficit and contractionary monetary policy 
D) a budget surplus and contractionary monetary policy

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