Use the following to answer questions .
Exhibit: Fiscal Policy 1 
-(Exhibit: Fiscal Policy 1) In this situation, if policymakers want to close the output gap with fiscal policies that will stimulate aggregate demand, what should they do?
A) establish a consumption tax to encourage savings
B) increase government spending
C) loosen environmental regulations to lower businesses cost of production
D) raise interest rates
Correct Answer:
Verified
Q59: A contractionary fiscal policy
I. decreases a government
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Q63: Use the following to answer questions .
Exhibit:
Q65: If there is a recessionary gap in
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Q67: Suppose fiscal authorities raise state income tax
Q68: Use the following to answer questions .
Exhibit:
Q69: Use the following to answer questions .
Exhibit:
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