A specific reduction in government spending will dampen demand-pull inflation by a greater amount, the:
A) smaller is the economy's MPC.
B) flatter is the economy's aggregate supply curve.
C) smaller is the economy's MPS.
D) less the economy's built-in stability.
Correct Answer:
Verified
Q22: An appropriate fiscal policy for severe demand-pull
Q29: A contractionary fiscal policy is shown as
Q67: In an economy, the government wants to
Q68: Which set of fiscal policies would tend
Q69: Assume that aggregate demand in the economy
Q71: Suppose that in an economy with an
Q73: Which combination of fiscal policy actions would
Q74: In an aggregate demand and aggregate supply
Q76: Contractionary fiscal policy is so named because
Q77: If the MPS in an economy is
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