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The Government Might Increase Its Spending to End a Recession

Question 176

Multiple Choice

The government might increase its spending to end a recession because:


A) allowing the short-run aggregate supply to adjust since back to the long-run can take a long time.
B) the economy experiences lower prices at the long-run equilibrium.
C) the economy enjoys a higher level of output in the long run.
D) None of these justify why the government might change its spending to end a recession.

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