This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: To eliminate a recessionary gap, what fiscal policy should the government pursue? What will be an ... (Read 83 times)

Mr3Hunna

  • Hero Member
  • *****
  • Posts: 536
on: Jun 29, 2018
To eliminate a recessionary gap, what fiscal policy should the government pursue?
 
  What will be an ideal response?

Question 2

The economy is at full employment. If aggregate demand increases,
 
  A) an inflationary gap is created and the AS curve shifts leftward as the money wage rate rises.
  B) an inflationary gap is created and the AD curve shifts leftward.
  C) an inflationary gap is created and potential GDP increases to close the ga


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

whitcassie

  • Sr. Member
  • ****
  • Posts: 298
Reply #1 on: Jun 29, 2018
Answer to Question 1

A recessionary gap occurs when real GDP is less than potential GDP. To restore full employment, the government should increase its expenditures on goods or services or decrease its taxes.

Answer to Question 2

A


Mr3Hunna

  • Member
  • Posts: 536
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

This graphic illustrates the original systems model of politics advanced by David Easton. Politics This graphic illustrates the original systems model of politics advanced by David Easton. Politics
This chart shows the various lines of responsibility and how they differ in presidential and parliam This chart shows the various lines of responsibility and how they differ in presidential and parliam
A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan A passenger train crosses Stony Creek Bridge in the Rocky Mountains in 1878. Railroads were importan
American Government: Roots and Reform, AP* Edition, 12th Edition American Government: Roots and Reform, AP* Edition, 12th Edition
Chemistry is very interesting to me. I hope one I can pursue an online Bachelor of Science in Chemi Chemistry is very interesting to me. I hope one I can pursue an online Bachelor of Science in Chemi
Presidential success under unified and divided government, from Eisenhower to trump Presidential success under unified and divided government, from Eisenhower to trump
Video: Virtual Enzyme Kinetics & Lineweaver Burk Plot

For a complete list of videos, visit our video library