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During a recessionary gap: A. all else equal, the budget deficit would increase. B. contractionary fiscal policy would help correct the problem. C. an increase

During a recessionary gap:

  • A.

all else equal, the budget deficit would increase.

  • B.

contractionary fiscal policy would help correct the problem.

  • C.

an increase in taxes or a decrease in government purchases would shift the AD curve to the right.

  • D.

unemployment would most likely be falling.

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