Multiple Choice
What is the effect of counter-cyclical fiscal policy on the price level?
A) It will increase in the case of a recessionary gap.
B) It will increase in the case of an inflationary gap.
C) It will decrease in the case of a recessionary gap.
D) It will have no effect in the case of a recessionary gap.
E) It will have no effect in the case of an inflationary gap.
Correct Answer:
Verified
Correct Answer:
Verified
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