To Close an Inflationary Gap with Fiscal Policy, the Government

question 118

Multiple Choice

To close an inflationary gap with fiscal policy, the government could:

• A) reduce budget allocations to interstate highway maintenance.
• B) increase federal subsidies to state universities.
• C) lower the corporate income tax rate.
• D) raise the average amount awarded for a disability pension.

---

Definitions:

1990s

The decade extending from January 1, 1990, to December 31, 1999, marked by significant global events, technological advancements, and cultural shifts.

United States

A country located in North America, comprising 50 states, a federal district, and several territories, known for its diverse cultures and large economy.

Intergenerational Mobility

Intergenerational Mobility refers to the changes in social status that occur from one generation to the next within a family or lineage.

Intragenerational Mobility

The movement of an individual within the social hierarchy during their lifetime, which can be upward or downward in terms of social class, income, and status.