Contractionary fiscal policy tools can eliminate an inflationary gap arising from a continuation of current budget policies.
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Q16: Inflationary gaps can be cured by either
Q17: The personal income tax varies as GDP
Q18: Government purchases have the same multiplier effect
Q19: Transfer payments represent income that is not
Q20: Most tax payments increase as GDP increases.
Q22: A budget surplus occurs when tax revenues
Q23: One of the objections to the supply-side
Q24: Recessionary gaps can be cured by raising
Q25: An income tax reduces the size of
Q26: Conservatives usually favor increasing government spending to
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