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Use Figure: Fiscal Policy I

Question 95

Multiple Choice

Use Figure: Fiscal Policy I. If the economy is operating at point A, then there is _____ gap, and the government can _____ taxes to close this gap.

Figure: Fiscal Policy I
Use Figure: Fiscal Policy I. If the economy is operating at point A, then there is _____ gap, and the government can _____ taxes to close this gap. ​ Figure: Fiscal Policy I   A)  an inflationary; increase B)  a recessionary; increase C)  an inflationary; decrease D)  a recessionary; decrease


A) an inflationary; increase
B) a recessionary; increase
C) an inflationary; decrease
D) a recessionary; decrease

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