In 2000 . many economists believed that the most serious macroeconomic problem confronting the U.S. economy was an inflationary gap. Which policies would be effective in dealing with this problem?

a. Increase transfer payments.
b. Increase government purchases.
c. Decrease personal income taxes.
d. Increase personal income taxes.


d

Economics

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If a monopoly discovers that the demand for its output has become more elastic at the original output level, then it will respond by

A) producing more and setting a higher price. B) setting a lower price. C) setting a higher price. D) producing more while leaving price unchanged.

Economics

When a good ends up undersupplied, we can assume it is a:

A. common resource. B. private good. C. public good. D. transitory good.

Economics

Fiscal policy cannot help an economy produce at an output level above potential GDP without causing __________.

a. inflation b. deflation c. unemployment d. taxation

Economics

The Bureau of Labor Statistics divides the adult population into three categories: employed, unemployed, and not in the labor force

a. True b. False Indicate whether the statement is true or false

Economics