Suppose the economy experiences an inflationary gap.Policymakers who believe that the Private sector has failed to provide adequately, a host of services that would benefit society would favor which of the following policies to close the gap?
A) reduction in government spending
B) increases in income tax rates
C) increases in corporate tax rates
D) increases in interest rates
Correct Answer:
Verified
Q109: If private sector investment does not respond
Q123: Supply-side economics is the school of thought
Q130: Figure 12-4 Q131: The impact of fiscal policy is![]()
A) magnified
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