In Working to Correct a Recession with Fiscal Policy, the Government

question 134

Multiple Choice

In working to correct a recession with fiscal policy, the government can

• A) wait for wages and prices to become more flexible.
• B) increase the money supply.
• C) increase its expenditures and/or decrease taxes to raise the Solow growth curve.
• D) raise its expenditures and/or lower taxes to increase aggregate demand.