Figure 33-8

In Figure 33-8, which of the following movements reflects the closing of a recessionary gap with an expansionary monetary and fiscal policy?

Question

Figure 33-8

In Figure 33-8, which of the following movements reflects the closing of a recessionary gap with an expansionary monetary and fiscal policy?

Quizplus · Accepted Answer

The movement from point D to C in the graph shows an increase in output and a decrease in unemployment, indicating the closing of the recessionary gap. This movement is accompanied by an expansionary monetary and fiscal policy.

Figure 33-8 in Figure 33-8, Which of the Following Movements Reflects the Movements