Suppose the economy is in a recession and the government decides it needs to reduce the budget deficit.Other things equal,this would tend to
A) increase the output gap and make the recession worse.
B) decrease the output gap and make the recession worse.
C) help to eliminate the recession, but at the cost of a much higher inflation rate.
D) keep output from declining further, but increase the real interest rate and the inflation rate.

Question

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The Answer of Suppose the economy is in a recession and the government decides it needs to reduce the budget deficit.Other things equal,this would tend to
A) increase the output gap and make the recession worse.
B) decrease the output gap and make the recession worse.
C) help to eliminate the recession, but at the cost of a much higher inflation rate.
D) keep output from declining further, but increase the real interest rate and the inflation rate.

Suppose the Economy Is in a Recession and the Government