Which of the following conditions describes a recessionary gap?
A) The short-run equilibrium level of real GDP is above the long-run level of real GDP.
B) The short-run equilibrium level of real GDP is below the long-run level of real GDP.
C) The actual interest rate is above the equilibrium interest rate.
D) The actual interest rate is below the equilibrium interest rate.
Correct Answer:
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A)involve cutting
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A)uses the tools of taxation and
Q56: Which of the following fiscal policy actions
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