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Use this scenario for the following four questions: Suppose the economy is in recession and employment is below the full-employment level. What happens in the
Use this scenario for the following four questions: Suppose the economy is in recession and employment is below the full-employment level. What happens in the long run if policymakers increase government purchases appropriately? The price level will be unchanged and employment will be lower. The price level will be lower and employment will be lower. The price level will be lower and employment will return to its full-employment level. The price level will be unchanged and employment will return to its full-employment level
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