Author Question: Which of the following is most likely to close a recessionary gap in the economy? a. A decrease in ... (Read 79 times)

eruditmonkey@yahoo.com · **on:** Jun 30, 2018

Which of the following is most likely to close a recessionary gap in the economy?
a. A decrease in the expenditure on infrastructure
b. An increase in the income tax rate
c. An increase in the rate of foreign exchange
d. A decrease in money supply
e. An increase in the compensation for government employees

Question 2

The law of diminishing returns causes a firm's short-run marginal cost curve to be s-shaped.
a. True
b. False
Indicate whether the statement is true or false