-In the above figure, which of the following policies could move the economy to potential GDP?
A) Increasing government expenditures and decreasing taxes
B) Decreasing government expenditures and increasing taxes
C) Decreasing taxes and not changing government expenditures
D) None of the above answers is correct.
Correct Answer:
Verified
Q64: A government incurs a budget deficit when
A)taxes
Q65: Expenditures such as social security benefits, farm
Q66: The use of discretionary fiscal policy to
Q67: If the government runs a deficit, the
Q68: When interest income is taxed and the
Q70: An increase in taxes on labour income
Q71: An example of automatic fiscal policy is
Q72: The structural surplus
A)is legally required to be
Q73: The cyclical deficit is the portion of
Q74: Which of the following relationships is correct?
A)Cyclical
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