High School Economics Quiz
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APPLIED ECONOMICS AND CIVIC LITERACY
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An advocate for a new government spending program argues, "Distributing stimulus checks directly to citizens will immediately boost retail sales and help struggling businesses." An economist counters, "While that may be true in the short term, injecting that much new money into the economy without a corresponding increase in the production of goods and services could have negative long-term consequences."
The economist's counterargument is most likely referring to which potential long-term consequence?
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