Solved

To Eliminate an Inflationary Gap, Policy-Makers May Pursue

Question 149

Multiple Choice

To eliminate an inflationary gap, policy-makers may pursue


A) an expansionary policy that reduces the price level.
B) a contractionary policy that decreases aggregate demand.
C) a non-intervention policy that leaves aggregate demand unaffected and increases aggregate supply.
D) an intervention policy that increases aggregate supply and decreases aggregate demand.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions