Multiple Choice
The figure above shows a nation's aggregate demand curve,aggregate supply curve,and potential GDP.
-In the figure above,the ________ gap is one trillion dollars.To close the gap,the government can ________ government expenditure and/or ________ taxes.
A) recessionary;increase;decrease
B) inflationary;decrease;increase
C) inflationary;increase;increase
D) recessionary;decrease;decrease
E) recessionary;decrease;increase
Correct Answer:
Verified
Correct Answer:
Verified
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