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    Modern Principles Macroeconomics
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    Exam 18: Fiscal Policy
  5. Question
    Fiscal Policy Is MOST Effective in Keeping Both Inflation and Real
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Fiscal Policy Is MOST Effective in Keeping Both Inflation and Real

Question 129

Question 129

Multiple Choice

Fiscal policy is MOST effective in keeping both inflation and real growth stable when there is a:


A) shock to the LRAS curve.
B) shock to aggregate demand.
C) real shock.
D) change in expected inflation that shifts the SRAS curve.

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