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What is the likely outcome when a government handles a recession by remaining passive while the economy returns to full employment on its own? Multiple

What is the likely outcome when a government handles a recession by remaining passive while the economy returns to full employment on its own? Multiple choice question. The price level will start rising, causing a similar rise in inflation. Unemployment will rise as wages increase. Aggregate demand will increase and inflation will fall. The recession will persist, with a large loss of output

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