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Business, 15.04.2021 17:00 cocoapop

Consider the figures to the right. Which of the following combinations of specific fiscal policy will return the economy to​ long-run macroeconomic equilibrium​ (point C)? That​ is, what policy will move aggregate demand from AD2 to AD2, (policy) in the second​ period? A. Example​ (A): Decrease government spending Example​ (B): Decrease taxes B. Example​ (A): Increase taxes Example​ (B): Increase government spending C. Example​ (A): Decrease government spending Example​ (B): Decrease government spending D. Example​ (A): Increase government spending Example​ (B): Increase taxes

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Consider the figures to the right. Which of the following combinations of specific fiscal policy wil...
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