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Economics
MEDIUM
ENGLISH
Economics
Suppose a wave of investor and consumer optimisms has increased spending so that the current level of input exceeds the long-run natural rate If policy makers choose to engage in activist stabilization policy they should ?
decrease government spending Which the shifts the aggregate demand curve to the left
Correct answer
B
decrease taxes, which shifts the aggregate demand curve to the right
Option B
C
decrease taxes, which shifts the aggregate demand curve to the left
Option C
D
decrease government spending which shifts the aggregate demand curve to the right
Option D
Correct answer: A
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