If the economy is in an equilibrium with real GDP less than potential GDP, a fiscal stimulus could move the economy toward potential GDP by simultaneously ________ taxes and ________ government expenditures on goods and services

A) raising; increasing
B) raising; decreasing
C) cutting; increasing
D) cutting; decreasing
E) raising; not changing


C

Economics

You might also like to view...

If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, the consumer surplus will ________ if the negotiated price is $1.50 as opposed to $2.00

A) increase B) decrease C) not change D) All of the above are possibilities.

Economics

Refer to the figure above. What is the domestic price of pens in Lithasia?

A) $1 B) $2 C) $3 D) $6

Economics

Which of the following is not a determinant of demand?

a) Income. b) Price of other goods. c) Available technology. d) Expectations of income.

Economics

The difference between capitalism and mercantilism is that under capitalism:

A. industrialists' views are represented by craft guild organizations. B. the state plays a more active role in coordinating economic activity. C. craft guilds rather than merchants own capital. D. the invisible hand is more important than the government.

Economics