In the figure above, which of the following is true?

i. Governments coordinate economic activities of households and firms.
ii. Governments buy goods and services in goods markets.
iii. Households pay taxes directly to firms.
A) only ii
B) only i
C) only iii
D) i and ii
E) ii and iii

A

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Active macroeconomic policy would move to close an expansionary gap by decreasing aggregate demand

a. True b. False Indicate whether the statement is true or false

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