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In order to close an inflationary gap, government can consider implementing _________________. A. balanced budget policy B. expansionary fiscal policy by increasing both government spending

In order to close an inflationary gap, government can consider implementing_________________.

A.

balanced budget policy

B.

expansionary fiscal policy by increasing both government spending and taxes

C.

expansionary fiscal policy by increasing government spending and reducing taxes

D.

contractionary fiscal policy by reducing government spending and raising taxes

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