The fiscal policy to counter a recessionary gap is a
A) positive aggregate supply shock.
B) negative aggregate supply shock.
C) positive aggregate demand shock.
D) negative aggregate demand shock.
E) contractionary fiscal policy.
Correct Answer:
Verified
Q26: The "No - Markets Fail Often" camp
Q27: When real GDP exceeds potential GDP, fiscal
Q28: Which government fiscal policy is a positive
Q29: Fiscal policy is
A) the use of government
Q30: Which event has a multiplier effect and
Q32: During a recessionary gap, government fiscal policy
Q33: The "No - Markets Fail Often" camp
Q34: The estimated size of the multiplier effect
Q35: The "Yes - Markets Self-Adjust" camp favours
Q36: Which government fiscal policy is a negative
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