Author Question: Actual GDP will be below potential GDP: a. when the economy is at full employment. b. during an ... (Read 87 times)

ETearle · **on:** Jun 30, 2018

Actual GDP will be below potential GDP:
a. when the economy is at full employment.
b. during an economic boom.
c. when resources are fully utilized.
d. during a recession.

Question 2

If an inflationary boom exists, the appropriate fiscal policy is to:
a. increase the budget deficit.
b. increase government spending and hold taxes constant.
c. decrease government spending and/or raise taxes.
d. hold government spending constant and decrease taxes.