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    Economics Today
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    Exam 13: Fiscal Policy
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    Suppose There Currently Is an Inflationary Gap
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Suppose There Currently Is an Inflationary Gap

Question 173

Question 173

Multiple Choice

Suppose there currently is an inflationary gap. What could the government do to bring prices down?


A) Nothing.
B) Reduce government spending.
C) Increase government spending.
D) Shift the long-run aggregate supply curve.

Correct Answer:

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