If the economy is currently in a recessionary gap,

Question

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Some economists may believe that the economy can remove itself from a recessionary gap without government intervention through market forces such as changes in consumer and business spending, lowering interest rates, or increasing exports. However, others may argue that government intervention such as fiscal policy (increasing government spending or reducing taxes) or monetary policy (lowering interest rates or increasing the money supply) is necessary to stimulate economic growth and close the recessionary gap. Therefore, not all economists will agree on the appropriate course of action.

If the Economy Is Currently in a Recessionary Gap