Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A)expansionary fiscal or monetary policy can increase the nation's output temporarily above its natural level
• B)expansionary fiscal or monetary policy can used to correct a recession but only at the expense of higher prices in the nation
• C)a recession cannot be eliminated automatically even if domestic prices are flexible downward
• D)when prices are not flexible downward inflation may be less costly that recession

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Characterized by progression from one stage to another in a single series of steps; sequential.

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