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Consider an economy originally at its long-run equilibrium. Suddenly, consumer confidence falls, decreasing consumption. If monetary policy is used to stabilize output, which of the

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Consider an economy originally at its long-run equilibrium. Suddenly, consumer confidence falls, decreasing consumption. If monetary policy is used to stabilize output, which of the following would be used? decrease the money supply increase government spending decrease government spending increase the money supply D Question 6 1 pts If an economy is in a recession and inflation has increased, which of the following shocks is the most likely cause of this recession? Increase in oil prices Unannounced increase in the money supply Tax cut Unannounced decrease in the money supply Decrease in consumer confidence

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