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Monetary and Fiscal Policy
This paper responds to a Macroeconomic scenario in which the economy faces a recessionary gap, asking what policies to pursue to reduce that gap and what some of the consequences might be for other economic elements, with a recessionary gap being associated with a business-cycle contraction and being one of two alternative output gaps that can occur when short-run production differs from full employment, the other being an inflationary gap.
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