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Suppose a decrease in consumer confidence caused the AD to shift left and persistent low consumer confidence lead to a recession. To move the economy
Suppose a decrease in consumer confidence caused the AD to shift left and persistent low consumer confidence lead to a recession. To move the economy back to its potential output and target inflation rate. The best course of action is
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Do nothing
Shift AD to the left
Shift AS to the right
Shift AD to the right
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