An inflationary gap may be eliminated using contractionary fiscal policy.
a. true
b. false
Ans: a. true
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Which of the following will NOT shift the Keynesian short-run aggregate supply curve?
A) a change in input prices B) a change in technology C) a change in the price level D) a change in profit expectations
The figure above shows the market for tires. According to the figure, the government collects ________ per month in total tax revenue
A) $600 million B) $1,200 million C) $2,000 million D) $900 million E) None of the above answers is correct.
Assume the graph shown shows Bobbi's budget constraint. If hairbands cost $5, then Bobbi's income to spend on these two items must be:
A. $8.
B. $6.
C. $40.
D. Cannot be determined without more information.
Part of the normal aftermath of a period of excessive aggregate demand is
A. improvement in the quality of life. B. reflation. C. real GDP growth. D. stagflation. E. All of these responses are correct.