Author Question: If the economy is falling below potential real GDP, which of the following would be an appropriate ... (Read 45 times)

Beheh · **on:** Jun 29, 2018

If the economy is falling below potential real GDP, which of the following would be an appropriate fiscal policy to bring the economy back to long-run aggregate supply? An increase in

A) government purchases.
B) oil prices.
C) the money supply and a decrease in interest rates.
D) taxes.

Question 2

Inflation usually increases during a recession and decreases during an expansion.

Indicate whether the statement is true or false