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  • Card 7 / 13:
    In a Keynesian framework, using an AD/AS diagram, which of the following government policy choices offer a possible solution to recession? Which offer a possible solution to inflation?

    A tax increase on consumer income.A surge in military spending.A reduction in taxes for businesses that increase investment.A major increase in what the U.S. government spends on healthcare.

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Source:  OpenStax, Macroeconomics. OpenStax CNX. Jun 16, 2014 Download for free at http://legacy.cnx.org/content/col11626/1.10
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