To eliminate a recessionary gap, what fiscal policy should the government pursue?
What will be an ideal response?
A recessionary gap occurs when real GDP is less than potential GDP. To restore full employment, the government should increase its expenditures on goods or services or decrease its taxes.
Economics
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The long-run Phillips curve shows the relationship between
A) real GDP and the natural unemployment rate. B) the nominal interest rate and real interest rate. C) real GDP and potential GDP. D) the inflation rate and the natural unemployment rate. E) the inflation rate and the unemployment rate.
Economics
Saltbricks will be considered as money if they are generally acceptable to sellers in exchange for goods and services
a. True b. False Indicate whether the statement is true or false
Economics