Solved

Figure 12-2 -Refer to Figure 12-2. Suppose Real GDP Is Equal to Is

Question 68

Multiple Choice

Figure 12-2 Figure 12-2 -Refer to Figure 12-2. Suppose real GDP is equal to Y<sub>r</sub>. If policymakers want to close the output gap with demand management policies, what should they do? A) lower corporate profit tax rates to encourage investments B) increase investment tax credits to businesses C) decrease government spending on transfer payments and on final goods and services D) lower interest rates
-Refer to Figure 12-2. Suppose real GDP is equal to Yr. If policymakers want to close the output gap with demand management policies, what should they do?


A) lower corporate profit tax rates to encourage investments
B) increase investment tax credits to businesses
C) decrease government spending on transfer payments and on final goods and services
D) lower interest rates

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q57: Expansionary fiscal policy includes
A) increasing taxes and

Q63: If there is an inflationary gap in

Q64: Figure 12-1 Figure 12-1 </p></div><svg width=

Q65: A contractionary fiscal policy
I. decreases a

Q69: Figure 12-1 Figure 12-1 </p></div><svg width=

Q70: A recessionary gap can be closed with
A)

Q71: If there is a recessionary gap in

Q73: An inflationary gap can be closed with
A)

Q75: A contractionary fiscal policy shifts the aggregate

Q77: An expansionary fiscal policy shifts the aggregate

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents