7. Describe three alternative responses available to policymakers when the economy is in recession. What are the
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7. Describe three alternative responses available to policymakers when the economy is in recession. What are the advantages and disadvantages of each strategy? Be sure to discuss the effects on employ- ment, the price level, and the composition of output. What are some of the practical difficulties in using macroeconomic stabilization policies to fight recessions?
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