To close a recessionary gap using fiscal policy,the government can:
A) increase government spending by the size of the gap.
B) decrease government spending by the size of the gap.
C) increase government spending by more than the size of the gap.
D) increase government spending by less than the size of the gap.
E) decrease government spending by more than the size of the gap.
Correct Answer:
Verified
Q19: All of the following are tools of
Q20: Fiscal policy focuses on manipulating _.
A)aggregate demand
Q21: The introduction of a tax by the
Q22: The effect of a change in net
Q23: When spending by the federal government exceeds
Q25: A federal budget deficit occurs when:
A)there is
Q26: If government purchases increase and net taxes
Q27: When net taxes increase and government purchases
Q28: Which of the following fiscal programs is
Q29: A change in net taxes affects the
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