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Dynamic AD-AS Model: Fiscal Policy
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Problem 10
Dynamic AD-AS Model: Fiscal Policy
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25. Dynamic AD/AS Model / Dynamic AD-AS Model: Fiscal Policy / Problem 5
Problem 5
What are the potential risks of using contractionary fiscal policy during a period of economic growth?
A
It may cause a trade deficit.
B
It may increase the national debt.
C
It may slow down economic growth and increase unemployment.
D
It may lead to hyperinflation.
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