Suppose the economy is operating below potential output. If policy makers try to avoid a budget deficit by raising taxes or reducing government spending, these actions would
A) make a recession worse. B) increase inflation.
C) negate the multiplier effect. D) help pull an economy out of a depression.
A
Economics
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In markets, the invisible hand allocates resources efficiently
a. in all cases. b. when the buyers and sellers are the only interested parties. c. when there are positive externalities, but not when there are negative externalities. d. when there are negative externalities, but not when there are positive externalities.
Economics
When the housing bubble burst, prices fell particularly severely in
A. Georgia. B. Nevada. C. Pennsylvania. D. West Virginia.
Economics