During a Recession Caused by a Reduction in Short-Run Aggregate

question 37

Multiple Choice

During a recession caused by a reduction in short-run aggregate supply, a supporter of supply-side policies would focus on policies that:

• A) increase aggregate demand.
• B) increase aggregate supply.
• C) decrease aggregate demand.
• D) decrease aggregate supply.

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Definitions:

Specialized Knowledge

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Problem-Solving Ability

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Perceptual Speed

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History-graded Influence

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