Refer to the above figure. Suppose the economy is operating at point A. There is a recessionary gap of ________, which can be closed by ________
A) $3 trillion; increasing government spending by $1 trillion
B) $1 trillion; expansionary fiscal policy that shifts the short-run aggregate supply curve through point C
C) $2 trillion; expansionary fiscal policy that generates another $2 trillion in total spending
D) $2 trillion; an increase in government spending of $14 trillion
C
Economics
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List and briefly describe the five factors of production
What will be an ideal response?
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Which balance of payments account records payments for imports and exports?
A) reserves account B) capital and financial account C) current account D) official settlements account E) trade account
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