Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
a. The rate of inflation would decline.
b. The rate of inflation would rise.
c. A recession would develop.
d. Interest rates would fall.
a
Economics
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The rate of inflation increases when
A) the unemployment rate equals the NAIRU. B) the unemployment rate exceeds the NAIRU. C) the unemployment rate is less than the NAIRU. D) the unemployment rate increases faster than the NAIRU increases.
Economics
Would a new growth theorist expect economic growth to be very rapid in one of the Communist nations before the fall of Communism? Why or why not?
What will be an ideal response?
Economics