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If the unemployment rate in the economy has increased from 8% to 9% in the last six months, the appropriate use of fiscal policy would be: O To raise taxes and increase government spending. O To raise interest rates and decrease government spending. O To raise taxes. O To lower taxes.

If the unemployment rate in the economy has increased from 8% to 9% in the last six months, the appropriate use of fiscal policy would be: O To raise taxes and increase government spending. O To raise interest rates and decrease government spending. O To raise taxes. O To lower taxes.

Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter18: Debates In Macroeconomics Over The Role And Effects Of Government
Section: Chapter Questions
Problem 1WNG
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If the unemployment rate in the economy has increased from 8% to 9% in the last six months, the appropriate use of fiscal policy would be: O To raise taxes and increase government spending. O To raise interest rates and decrease government spending. O To raise taxes. O To lower taxes.
Transcribed Image Text:If the unemployment rate in the economy has increased from 8% to 9% in the last six months, the appropriate use of fiscal policy would be: O To raise taxes and increase government spending. O To raise interest rates and decrease government spending. O To raise taxes. O To lower taxes.
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