If the federal government wishes to move the economy out of a recessionary gap, the appropriate fiscal policy is a(n)

Name: If the federal government wishes to move the economy out of a recessionary gap, the appropriate fiscal policy is a(n)
Brand: Quizplus
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Question

Quizplus · Accepted Answer

None of the above are correct because to move the economy out of a recessionary gap, the government should increase government purchases, decrease taxes, or increase transfer payments, which are not listed as options.

If the Federal Government Wishes to Move the Economy Out