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The economy is in long run equilibrium. There is a negative AS shock in the short run, the government should _______________, then in the long
The economy is in long run equilibrium. There is a negative AS shock in the short run, the government should _______________, then in the long run, the equilibrium output will move to the _____ back to the the economy's potential output.
Select one:
a.do nothing; right
b.decrease government spending; left
c.decrease taxes; right
d.increase government spending; left
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