In the figure above, to use fiscal policy to move the economy back to potential GDP, the government must increase government expenditure by ________ $1 trillion and/or decrease taxes by ________ $1 trillion
A) more than; more than
B) less than; less than
C) less than; more than
D) exactly; exactly
E) more than; less than
The figure above shows an economy aggregate demand curve and aggregate supply curves.
B
You might also like to view...
"To count as required reserves, the reserves must be on deposit at the bank's district Federal Reserve Bank." Is the previous statement correct or incorrect?
What will be an ideal response?
The long run is a period of time in which
A) all factors of production are variable. B) all factors of production are fixed. C) some but not all factors of production are fixed. D) some but not all factors of production are variable.
The FOMC no longer sets targets for M1 and M2 to meet its goals of price stability and high employment
Indicate whether the statement is true or false
The amount paid for an option is the
A) strike price. B) premium. C) discount. D) yield.