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Suppose that a government is instituted that leads to increased output and no change in inflation. Which of the following statements is false? Output may
Suppose that a government is instituted that leads to increased output and no change in inflation. Which of the following statements is false? Output may have reached maximum capacity of the economy( I think it is this) Government may have lowered interst rates(I don't think it's this one because low interest rates always lead to change in inflation) The economy was likely in a recession prior to introducing the policy ( I don't think it's this because output can be increased without increasing inflation, if unemployment is high) The policy may have caused consumer confidence to increase The government may have increase government spending
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