If the government is running a cyclically adjusted budget deficit, ________ fiscal policy is ________ because aggregate expenditure is increasing
A) discretionary; contractionary
B) discretionary; expansionary
C) expansionary; ineffective
D) contractionary; appropriate
B
Economics
You might also like to view...
Which of the following is likely to happen if a German company opens a production unit in New York?
A) U.S.'s GDP will decrease. B) U.S.'s GNP will increase. C) Germany's GNP will increase. D) Germany's GDP will increase.
Economics
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
What will be an ideal response?
Economics