To close a GDP gap, government should
A) raise taxes and decrease government spending
B) decrease taxes and increase government spending
C) raise taxes and increase government spending
D) decrease taxes and decrease government spending
E) It cannot be determined without knowing more details, as every situation is different.
Correct Answer:
Verified
Q12: If aggregate demand intersects aggregate supply in
Q13: Which of the following statements about taxation
Q14: Taxes affect aggregate demand
A) indirectly by changing
Q15: Government spending equals the sum of these
Q16: If the government wants to close a
Q18: The effect of an increase in government
Q19: The misery index is defined as
A) potential
Q20: Which of the following statements is false?
A)
Q21: When taxes go down, then output increases,
Q22: Once Congress receives the president's budget, the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents