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If the Current Level of Spending Falls Short of Full

Question 77

Multiple Choice

If the current level of spending falls short of full employment,the government can close the GDP gap by:


A) Increasing government spending by an amount less than the GDP gap.
B) Increasing government spending by an amount greater than the GDP gap.
C) Decreasing government spending by an amount less than the GDP gap.
D) Decreasing government spending by an amount greater than the GDP gap.

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