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Business, 15.04.2020 03:25 yedida

Suppose the target rate of unemployment is 5 percent but the actual rate of unemployment is 4 percent. Given this information, which of the following policies is most appropriate according to the AS/AD model?
A. A tax cut.
B. An increase in government spending.
C. A tax increase.
D. No change in taxes or government spending.

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