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I need help with questions 1, 1a, 2,15 and 16? la. Refer to the above figure . Suppose the economy is operating at point A.
I need help with questions 1, 1a, 2,15 and 16?
la. Refer to the above figure. Suppose the economy is operating at point A. There is a recessionary gap of _ _ _ _ , which can be closed by _ _ _ _
A) $3 trillion; increasing government spending by $1 trillion
B) $1 trillion; expansionary fiscal policy that shifts the short-run aggregate supply curve through point C
C) $2 trillion; expansionary fiscal policy that generates another $2 trillion in total spending D) $2 trillion; an increase in government spending of $14 trillion
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