When an economy faces an inflationary gap, an appropriate fiscal policy is to
A) increase aggregate demand.
B) decrease government expenditure.
C) decrease the quantity of money.
D) decrease taxes.
E) increase the quantity of money.
B
Economics
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Keynesian theory became important when classical economic theory did not adequately explain:
A. A prolonged period of both inflation and unemployment. B. A prolonged growth recession. C. A depression. D. A prolonged period of inflation. E. Outsourcing.
Economics
The demand for diet soft drinks (as a group) is relatively inelastic because
A) there are many of them on the market. B) there are few substitutes. C) the purchase of a soft drink represents a large portion of a person's budget. D) none of the above.
Economics