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An active stabilization policy designed to limit the size of government would do which of the following? Question 15 options: a) Raise government purchases to
An active stabilization policy designed to limit the size of government would do which of the following? Question 15 options: a) Raise government purchases to eliminate a recessionary gap and raise taxes to eliminate an inflationary gap b) Raise government purchases to eliminate a recessionary gap and lower taxes to eliminate an inflationary gap c) Reduce taxes to eliminate a recessionary gap and reduce government purchases to eliminate an inflationary gap d) Reduce taxes to eliminate a recessionary gap and raise government purchases to eliminate an inflationary gap
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