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March 29, 2017

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1)Which of the following represent expansionary fiscal policy?

A. an increase in average individual income tax rates
B. an increase in marginal individual income tax rates
C. a cut in corporate income tax rates

2)The amount of time that it takes to identify a national economic problem is

A. the recognition time lag.
B. the effect time lag.
C. the action time lag.

3)Contractionary fiscal policy usually will
A. generate greater real GDP.
B. generate lower price levels.
C. involve cutting taxes.

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