Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP?
A) an increase in government purchases
B) an increase in the supply of money
C) an increase in individual income taxes
D) a decrease in transfer payments
E) an increase in government support for environmental research
Correct Answer:
Verified
Q65: Expansionary fiscal policy involves increasing government purchases
Q66: Contractionary fiscal policy to prevent real GDP
Q69: Expansionary fiscal policy will
A)shift the aggregate demand
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