To offset the effect of a steep rise in net exports on the economy, the government might:
a. increase government purchases.
b. decrease government purchases.
c. increase taxes

Which of the following groups had the highest poverty rate in 2014 in the United States?

A) Asians B) Hispanics C) blacks D) female heads of families

Policy makers and citizens who want to expand the size of the government sector would favor stabilization policies that

a. raise G to eliminate a recessionary gap and lower taxes to eliminate an inflationary gap. b. raise G to eliminate a recessionary gap and raise taxes to eliminate an inflationary gap. c. reduce taxes to eliminate a recessionary gap and raise G to eliminate an inflationary gap. d. reduce taxes to eliminate a recessionary gap and reduce G to eliminate an inflationary gap.