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1.When the Federal government cuts taxes and increases spending to stimulate the economy during a period of recession, such actions are design to be: 2.Fiscal

1.When the Federal government cuts taxes and increases spending to stimulate the economy during a period of recession, such actions are design to be:

2.Fiscal policy is enacted through changes in

3,The intent of contractionary fiscal policy is to

4.If the government wishes to increase the level of real GDP, it might reduce

5.Refer to the above graph. What combination would most likely cause a shift from AD1 to AD2?

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