When recessions are the result of slowing growth in potential output, the government's best policy is to:
A. reduce government spending.
B. promote saving and investment.
C. decrease aggregate supply.
D. increase aggregate demand.
Answer: B
Economics
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An increase in real interest rates will ________ current consumption for households who are lenders and will ________ current consumption for households who are borrowers
A) increase; decrease B) decrease; increase C) have an unclear effect on; decrease D) decrease; have an unclear effect on
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Which of the following factors affect vertical integration of firms?
a. The demand for the final product in the market. b. The market power of each firm in an industry. c. The number of firms in an industry. d. The transaction cost at each stage of production.
Economics