Which of the following policies should not be used to close a recessionary gap?
A. Increases in government spending
B. Tax cuts
C. Increases in transfer payments
D. An income tax surcharge
D. An income tax surcharge
You might also like to view...
In the above figure, the economy is at point A and the money wage rate rises by 10 percent. If the price level is constant, firms will be willing to supply output equal to
A) less than $16.0 trillion. B) $16.0 trillion. C) more than $16.0 trillion. D) Without more information, it is impossible to determine which of the above answers is correct.
Explain why an increasing divorce rate tends to increase the inequality of income
In recent years the United States has run persistent deficits in its balance on the current account
a. True b. False Indicate whether the statement is true or false
Which of the following is a true statement?
a. The concept of potential output might be thought of as the maximum sustainable output of the economy under normal circumstances. b. Actual output cannot exceed potential output, even during a boom. c. When the actual rate of unemployment exceeds the natural rate, the actual output of the economy will rise above its potential. d. Potential output represents the absolute maximum level of production.