Solved

Use the Following to Answer Questions

Question 74

Multiple Choice

Use the following to answer questions .
Exhibit: Fiscal Policy 2 Use the following to answer questions . Exhibit: Fiscal Policy 2 -(Exhibit: Fiscal Policy 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
-(Exhibit: Fiscal Policy 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

Q69: Use the following to answer questions .
Exhibit:

Q70: A recessionary gap can be closed with
A)

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)

Q75: A contractionary fiscal policy shifts the aggregate

Q76: Use the following to answer questions .
Exhibit:

Q77: An expansionary fiscal policy shifts the aggregate

Q78: Use the following to answer questions .
Exhibit:

Q79: Use the following to answer questions .
Exhibit:

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