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To Close a Recessionary Gap Using Fiscal Policy,the Government Can

Question 24

Multiple Choice

To close a recessionary gap using fiscal policy,the government can:


A) increase government spending by the size of the gap.
B) decrease government spending by the size of the gap.
C) increase government spending by more than the size of the gap.
D) increase government spending by less than the size of the gap.
E) decrease government spending by more than the size of the gap.

Correct Answer:

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