Which of the following actions could be undertaken if the government wants to reduce an inflationary gap?
A) Increase taxes and reduce government spending.
B) Reduce taxes and increase government spending.
C) Increase taxes and increase government spending.
D) Reduce taxes and reduce government spending.
B) Reduce taxes and increase government spending.
You might also like to view...
Suppose Jess resigns from her low paying job. After looking for a new job for two weeks she is highly frustrated and gives up looking for a better-paying job. According to the U.S. Bureau of Labor Statistics, Jess would:
a. be considered as a part of the labor force. b. be considered employed. c. be considered temporarily unemployed. d. not be considered as a part of the labor force. e. be considered as seasonally unemployed.
Which of the following is an implicit cost?
a. salaries paid to owners who work for their own firm b. interest on money borrowed to finance equipment purchases c. cash payments for raw materials d. wages paid to hourly employees e. foregone rent on office space owned and used by the firm