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If the economy is experiencing inflation, then the most appropriate government policy would be to:

1. Shift the aggregate supply curve by using a tax cut coupled with spending cuts.

2. Shift the aggregate demand curve by using a tax cut coupled with spending cuts.

3. Shift the aggregate demand curve by using a tax cut coupled with more spending.

4. Shift the aggregate demand curve by using a tax increase coupled with spending cuts.

5. Shift the aggregate demand curve by using a tax increase coupled with more spending.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91224732

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