Which of the following fiscal policies will help close an expansionary gap?
A) The government increases spending.
B) The government increases spending and decreases taxes at the same time.
C) The government decreases taxes.
D) The government either decreases spending or it increases taxes.
Correct Answer:
Verified
Q80: Exhibit 11-3 Q81: In the AD-AS model, how is the Q82: Suppose the government closes an expansionary gap Q83: Which of the following might NOT be Q84: Suppose the government wants to increase income Q86: Suppose the government reduces its budget deficit Q87: Under what circumstances does a federal budget Q88: What set of fiscal policies could the Q89: What state would the federal budget be Q90: What happens to the aggregate demand curve
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