A recessionary gap can be closed with
A) using a contractionary monetary policy.
B) an increase in taxes.
C) a decrease in government purchases.
D) using an expansionary fiscal policy.
Correct Answer:
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Q65: If there is a recessionary gap in
Q66: Suppose the economy is in long-run equilibrium.
Q67: Suppose fiscal authorities raise state income tax
Q68: Use the following to answer questions .
Exhibit:
Q69: Use the following to answer questions .
Exhibit:
Q71: If there is an inflationary gap in
Q72: Use the following to answer questions .
Exhibit:
Q73: An inflationary gap can be closed with
A)
Q74: Use the following to answer questions .
Exhibit:
Q75: A contractionary fiscal policy shifts the aggregate
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