Economist A says all of the following: The economy needs expansionary fiscal policy to remove it from a recessionary gap.Government should either raise its _____________ or cut ___________________.I believe the government spending multiplier is ____________ than the tax multiplier,so I favor _____________________.

Question

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Economist A believes that the economy needs expansionary fiscal policy, and suggests that the government should either raise its spending or cut taxes to achieve this. The economist also believes that the spending multiplier is larger than the tax multiplier, and therefore favors raising spending over cutting taxes. Option C correctly summarizes all of the economist's beliefs.

Economist a Says All of the Following: the Economy Needs