A budget deficit will be least inflationary if the aggregate
A) demand curve is very steep.
B) demand curve is very flat.
C) supply curve is very flat.
D) supply curve is very steep.
Correct Answer:
Verified
Q161: If the economy is near full employment
Q162: If the government ran a major deficit,
Q163: Figure 32-3 Q164: "Crowding-out" refers to the process by which Q165: The crowding-out effect is likely to be Q167: The fallacy in the strict crowding-out argument Q168: Crowding out occurs when Q169: Many economists believe that if fiscal policy Q170: Figure 32-3 Q171: The crowding-in effect depends on the fact
A)high
A)increased taxes force higher
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