An economy is in the midst of a recession.A government policy aimed at moving the economy back to potential GDP is a(n) :
A) increase in taxes.
B) increase in government purchases for infrastructure improvements.
C) increase in the property tax.
D) decrease in unemployment benefits.
Correct Answer:
Verified
Q335: A government encounters a recessionary gap and
Q341: When potential output is less than actual
Q341: Funding for social insurance:
A) must come from
Q347: Time lags make:
A)fiscal policy more effective than
Q362: During a recessionary gap:
A)holding everything else constant,
Q366: When the government decides to increase taxes
Q367: Holding everything else constant, the multiplier effect
Q379: Time lags in the implementation of fiscal
Q380: The marginal propensity to consume:
A)is the change
Q382: The inclusion of a tax rate in
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