Actual GDP will be below potential GDP: a. when the economy is ...

[ETearle]

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.

[CharlieArnold]

Answer to Question 1

d

Answer to Question 2

c

[ETearle]

Thanks for the timely response, appreciate it

[shewald78]

Excellent