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Exhibit 12-3 -In an Economy Characterized by the Aggregate Demand Curve AD

question 119

True/False

Exhibit 12-3 Exhibit 12-3   -In an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS<sub>50 </sub>in Exhibit 12-3, the government could decrease government spending to shift the aggregate demand curve to AD' in order to eliminate the recessionary gap.
-In an economy characterized by the aggregate demand curve AD and the short-run aggregate supply curve SRAS50 in Exhibit 12-3, the government could decrease government spending to shift the aggregate demand curve to AD' in order to eliminate the recessionary gap.


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