Author Question: If real GDP exceeded potential real GDP and inflation was increasing, which of the following would ... (Read 80 times)

karateprodigy · **on:** Jun 29, 2018

If real GDP exceeded potential real GDP and inflation was increasing, which of the following would be an appropriate fiscal policy?

A) an increase in oil prices
B) an increase in taxes
C) an increase in government spending
D) a decrease in the money supply and an increase in the interest rate

Question 2

Inflation is generally the result of total spending growing faster than total production.

Indicate whether the statement is true or false