If the economy is initially suffering from a recessionary gap,the gap could be closed by

Question

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An increase in net exports would increase aggregate demand and can help close the recessionary gap. This is because an increase in net exports would increase the demand for domestically produced goods and services, which would increase output and reduce unemployment. Options A, B, and C would likely decrease aggregate demand and worsen the recessionary gap. Option D might help reduce inflationary pressures, but it would not help close the recessionary gap.

If the Economy Is Initially Suffering from a Recessionary Gap,the