In Working to Correct a Recession with Fiscal Policy,the Government

question 48

Multiple Choice

In working to correct a recession with fiscal policy,the government can:

• A) wait for wages and prices to become more flexible.
• B) increase the money supply.
• C) increase its expenditures and/or decrease taxes to shift the LRAS curve.
• D) raise its expenditures and/or lower taxes to increase aggregate demand.

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