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smitch6 smitch6
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Posts: 548
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6 years ago
According to our model, increasing G during a recession,
A) makes the economy worse off, since the equilibrium allocation of resources is Pareto-optimal.
B) will help the economy recover and increase economic welfare.
C) will increase consumption spending by consumers according to the multiplier effect.
D) has no effect.
E) had a multiplier much greater than one.
Textbook 
Macroeconomics, Canadian Edition

Macroeconomics, Canadian Edition


Edition: 5th
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6 years ago
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