Which of the following statements is/are true?

Question

Quizplus · Accepted Answer

All the statements provided are true. A) A recessionary gap occurs when equilibrium GDP is below the full employment level, indicating that the economy is not producing at its full potential. B) Fiscal policy (government spending and taxation) and monetary policy (central bank actions affecting interest rates and the money supply) are indeed different tools used to achieve economic objectives such as controlling inflation and stimulating economic growth. C) Budget deficits, which occur when government expenditures exceed revenues, are generally considered more appropriate during recessions to stimulate demand than during periods of inflation, where they could exacerbate the problem. D) Automatic stabilizers, such as unemployment insurance and progressive taxation, automatically adjust to economic conditions, helping to mitigate the severity of economic fluctuations without the need for new government action.

Which of the Following Statements Is/are True