In 1965 During the Johnson Administration, the U

question 46

Multiple Choice

In 1965 during the Johnson administration, the U.S. economy was headed toward an inflationary gap. Which of the following policies would an economist recommend?

• A) An open market purchase
• B) A tax increase
• C) A tax cut
• D) Increase defense spending

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Definitions:

Per Capita

A measure that divides a statistical quantity by the population who shares it, commonly used to express economic data in relation to people.

GDPs

Gross Domestic Products; the total monetary value of all goods and services produced within a country's borders in a specific time period, serving as a broad indicator of economic health.

Western European

Referring to the countries located in the western part of the European continent.

American Workers

Refers to the labor force in the United States, encompassing individuals engaged in various types of employment across diverse sectors of the economy.