-When equilibrium occurs at point a,the economy is exhibiting a(n) :
A) recessionary gap of ab, which calls for expansionary fiscal policy
B) recessionary gap of ab, which calls for contractionary fiscal policy
C) inflationary gap of ab, which calls for expansionary fiscal policy
D) inflationary gap of ab, which calls for contractionary fiscal policy
E) state in which there is no recessionary gap or inflationary gap
Correct Answer:
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Q1: Which of the following statements is correct?
A)Government
Q3: Automatic stabilizers operate in which of the
Q4: In a certain year,an economy's potential output
Q5: If Parliament adjusted our tax system so
Q6: Which of the following statements best describes
Q7: Assume that the economy is operating below
Q8: Fiscal policy refers to the:
A)manipulation of government
Q9: Fiscal policy that increases the budget deficit
Q10: The multiplier effect means that:
A)consumption is typically
Q11: The spending multiplier is calculated using the
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