Macroeconomics 20th Edition by Campbell McConnell,Stanley Brue,Sean Flynn

Exercise 8

If an economy has an inflationary expenditure gap, the government could attempt to bring the economy back towards the fall-employment level of GDP by _______taxes or _______ government expenditures.
A) Increasing; increasing.
B) Increasing; decreasing.
C) Decreasing; increasing.
D) Decreasing; decreasing.