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AP Macroeconomics
Unit 5 – Long–Run Consequences of Stabilization Policies
Topic 5.5
Unit 5
5.5 Crowding Out
What is the long-term impact of prolonged crowding out on economic growth?
Increase in economic growth and closing of the recessionary gap
Severe reduction in economic growth and widening of the recessionary gap
No impact on economic growth
Stabilization of economic growth at the current level
Study guides (1)
AP Macroeconomics - 5.5 Crowding Out
Key terms
Economic Growth
Crowding Out
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