Author Question: Suppose the economy is operating below potential output. If policy makers try to avoid a budget ... (Read 86 times)

javeds

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Suppose the economy is operating below potential output. If policy makers try to avoid a budget deficit by raising taxes or reducing government spending, these actions would
 
  A) make a recession worse. B) increase inflation.
  C) negate the multiplier effect. D) help pull an economy out of a depression.

Question 2

The ________ determines the supply of money.
 
  A) Federal Reserve B) banking system C) President D) Congress


TDubDCFL

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Answer to Question 1

A

Answer to Question 2

A



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