-Refer to Exhibit 15-5.Assume that the economy starts out in short-run equilibrium.An economist who believes that the economy is not self-regulating would assert that the government should use _________________ fiscal policy to close the existing ___________________ gap.
A) expansionary; inflationary
B) expansionary; recessionary
C) contractionary; recessionary
D) contractionary; inflationary

Question

-Refer to Exhibit 15-5.Assume that the economy starts out in short-run equilibrium.An economist who believes that the economy is not self-regulating would assert that the government should use _________________ fiscal policy to close the existing ___________________ gap.
A) expansionary; inflationary 
B) expansionary; recessionary 
C) contractionary; recessionary 
D) contractionary; inflationary

Quizplus · Accepted Answer

The Answer of 
-Refer to Exhibit 15-5.Assume that the economy starts out in short-run equilibrium.An economist who believes that the economy is not self-regulating would assert that the government should use _________________ fiscal policy to close the existing ___________________ gap.
A) expansionary; inflationary 
B) expansionary; recessionary 
C) contractionary; recessionary 
D) contractionary; inflationary