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One potential problem with using fiscal policy to close recessionary output gaps is that: Group of answer choices it may be offset by automatic stabilisers.

One potential problem with using fiscal policy to close recessionary output gaps is that:

Group of answer choices

it may be offset by automatic stabilisers.

sustained government deficits can be harmful to long run economic growth.

decreased government spending can cause inflationary pressure to build.

reduction in interest rates can reduce savings, and therefore investment.

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