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1. A decrease in aggregate demand is seen as a(n):
upward movement along the aggregate demand curve.
downward movement along the aggregate demand curve.
shift to the left in the aggregate demand curve.
shift to the right in the aggregate demand curve.
2. The economy is in a recession. Which of the following is a fiscal policy that the government should adopt to strengthen the economy?
A decrease in government transfer payments.
An increase in government purchases of goods and services.
A decrease in interest rates.
An increase in tax rates.
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