Business
Business, 30.11.2019 00:31, Lizethh1

If the country is in a recession, the government can to bring the economy back to its original level.

a) increase the money supply
b) create more government jobs
c) increase spending or decrease taxes
d) decrease spending or increase taxes

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Suppose that the central bank must follow a rule that requires it to increase the money supply when the price level falls and decrease the money supply when the price level rises. if the economy starts from long-run equilibrium and aggregate demand shifts right, the central bank must a. increase the money supply, which will move output back towards its long-run level. b. increase the money supply, which will move output farther from its long-run level. c. decrease the money supply, which will move output back towards its long-run level. d. decrease the money supply, which will move output farther from its long-run
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