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1. Which of the following would help a government reduce an inflationary output gap? Choose all that apply. a. Raising taxes. b. Lowering taxes. c.
1. Which of the following would help a government reduce an inflationary output gap? Choose all that apply. a. Raising taxes. b. Lowering taxes. c. Increasing government spending. d. Decreasing government spending. Explain your answers in detail, use economic terms (aggregate-spending, production, income, employment and so on...). What are the economic consequences, how would they influence the four major sectors (C+I+G+Xn) and Real GDP.
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