A government is most likely to use a reflationary policy:

a) In a recession
b) In a boom
c) When there is fast GDP growth
d) When prices are increasing fast


Answer: a) In a recession

Economics

You might also like to view...

Suppose bad weather in Florida unexpectedly results in a much smaller citrus crop than had been projected. This would tend to cause the labor demand curve for citrus pickers to shift to the

A) left, increasing wages. B) right, increasing wages. C) left, decreasing wages. D) right, decreasing wages.

Economics

Do rent ceilings result in any deadweight loss?

What will be an ideal response?

Economics

The person or firm that pays a tax bears the burden of the tax

Indicate whether the statement is true or false

Economics

Differentiate between an induced increase in consumption and an autonomous increase in consumption. How are they represented on a graph?

Economics