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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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