To close a recessionary gap using fiscal policy, the government can:
a. increase government spending by the size of the gap.
b. decrease government spending by the size of the gap.
c. increase government spending by more than the size of the gap.
d. increase government spending by less than the size of the gap.
e. decrease government spending by more than the size of the gap.
a
Economics
You might also like to view...
Parents who do not have their children immunized and attempt to benefit from other parents who did have their own children immunized are exhibiting an economic behavior known as
A) excludability. B) public rivalry. C) internalizing an external cost. D) free riding.
Economics
In a sequential game, one firm will act first and then other firms will respond
Indicate whether the statement is true or false
Economics