Economist C says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap.The choice of fiscal policy measures is between ________________ government spending and a _______________ in taxes.Since I am in favor of bigger government,I choose a(n)_________________ in _________________.

Question

Quizplus · Accepted Answer

Economist C is in favor of using expansionary fiscal policy to raise aggregate demand and lift the economy out of a recessionary gap. They also express a preference for bigger government, suggesting an increase in government spending. Therefore, the choice of fiscal policy measures is between increasing government spending and reducing taxes. Option B is the only one that includes an increase in government spending and a decrease in taxes. Option D includes a reduction in government spending and an increase in taxes, which goes against Economist C's preference for bigger government and expansionary fiscal policy. Therefore, the best choice is B.

Economist C Says All of the Following: Expansionary Fiscal Policy