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Dynamic AD-AS Model: Fiscal Policy
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Dynamic AD-AS Model: Fiscal Policy
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25. Dynamic AD/AS Model / Dynamic AD-AS Model: Fiscal Policy / Problem 3
Problem 3
Why might a government choose to cut taxes as part of an expansionary fiscal policy during a recession?
A
To increase consumer spending and boost aggregate demand.
B
To decrease imports and improve the trade balance.
C
To decrease consumer spending and reduce inflation.
D
To increase savings and reduce the budget deficit.
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