-If an Economy Is at an Equilibrium with an Inflationary

question 68

Multiple Choice

-If an economy is at an equilibrium with an inflationary gap, policymakers can use

• A) discretionary fiscal policy and cut taxes.
• B) automatic fiscal policy and cut taxes.
• C) discretionary fiscal policy and increase government expenditure.
• D) discretionary fiscal policy and decrease government expenditure.
• E) automatic fiscal policy and increase government expenditure.

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Definitions:

Gestures

Movements of the body or limbs that express or emphasize ideas, sentiments, or emotions.

Language

A system of symbols, sounds, and rules used for communication, crucial for human interaction and cognitive development.

Encourage

To give support, confidence, or hope to someone.

Menarche

The first menstrual cycle, or first menstrual bleeding, in female humans, marking the onset of reproductive capability.