Economics · Macroeconomics
What policy mix is recommended if an economy is in external balance but faces internal problems of unemployment and recession (below full employment)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Easy monetary policy and contractionary fiscal policy
- 2Easy monetary policy and expansionary fiscal policy✓
- 3Tighter monetary policy and expansionary fiscal policy
- 4Tighter monetary policy and contractionary fiscal policy
Correct answer
Easy monetary policy and expansionary fiscal policy
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