Choose the appropriate mix of policies

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Reference no: EM133630412

Question: In a recession the government will try to pursue expansionary fiscal policy to move the economy closer to full employment. To choose the appropriate mix of policies, policy makers should recognize that: In a recession the government will try to pursue expansionary fiscal policy to move the economy closer to full employment. To choose the appropriate mix of policies, policy makers should recognize that: government expenditures are always less expansionary than tax cuts. government expenditures are always more expansionary than tax cuts. government expenditures can be more or less expansionary than tax cuts depending on MPC. government expenditures can be more or less expansionary than tax cuts depending on the size of the government and tax multiplier.

Reference no: EM133630412

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