Suppose the economy is at a short- run equilibrium with real GDP greater than potential GDP. Which of the following fiscal policies would decrease real GDP and the price level?
A) A decrease in taxes.
B) An increase in taxes.
C) An increase in government expenditure.
D) None of the above answers is correct.
Correct Answer:
Verified
Q78: Q79: Income taxes in Australia are part of Q80: The difference between automatic fiscal policy and Q81: If the economy has a structural deficit Q82: An income tax _ potential GDP by Q84: If we compare the United States to
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