During the Great Depression, real GDP decreased, unemployment soared, and the inflation rate was negative. Which would have been the appropriate federal government policy combination to improve economic performance?
A) increase government expenditure, decrease taxes, increase the quantity of money
B) increase government expenditure, decrease taxes, decrease the quantity of money
C) decrease government expenditure, increase taxes, decrease the quantity of money
D) do not change government expenditures or taxes , increase the quantity of money
E) decrease government expenditures, increase taxes, do not change the quantity of money
A
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Which of the following would most likely cause both a decrease in the price of plasma screen TVs and a decrease in the number sold?
a. an increase in the supply of plasma screen TVs b. an increase in the demand for plasma screen TVs c. a decrease in the supply of plasma screen TVs d. a decrease in the demand for plasma screen TVs
Supporters of supply-side economics claim that Reagan's tax policies were quite successful in stimulating the economy because
A. inflation rates fell sharply from the high rates of 1980 and 1981. B. throughout most of the 1980s, federal receipts continued to rise even though tax rates had been cut. C. almost immediately after the tax cuts, the economy expanded and the recession of 1980-1982 came to an end. D. all of the above.