Solved

During a Recessionary Gap

Question 285

Multiple Choice

During a recessionary gap:


A) holding everything else constant, the budget deficit would increase.
B) contractionary fiscal policy would help correct this problem.
C) an increase in taxes or a decrease in government purchases would shift the AD curve to the right.
D) unemployment would most likely be falling.

Correct Answer:

verifed

Verified

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

Related Questions