Which offer a possible solution to inflation

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

1) A tax increase on consumer income.

2) A surge in military spending

3) A reduction in taxes for businesses that increase investment

4) Major reduction in what the U.S. government spends on health care outlay

Reference no: EM13833289

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