Which of the following should be increased by the government to control the growth rate of real GDP during an expansion?
A) Transfer payments
B) Expenditure on infrastructural development
C) Tax rates
D) Import duties

Question

Quizplus · Accepted Answer

Tax rates should be increased by the government to control the growth rate of real GDP during an expansion. This would reduce consumer spending and investment, which, in turn, would decrease demand and slow down economic growth.

Which of the Following Should Be Increased by the Government