If the Economy Is in an Inflationary Gap, Which of the Following

question 180

Multiple Choice

If the economy is in an inflationary gap, which of the following is the least appropriate policy mix?

• A)A budget surplus and expansionary monetary policy
• B)A budget deficit and expansionary monetary policy
• C)A budget deficit and contractionary monetary policy
• D)A budget surplus and contractionary monetary policy

---

Definitions:

Monocular

Monocular vision refers to the ability to see with only one eye, often implicating the depth perception and spatial awareness that relies on cues achievable by one eye.

Synesthesia

The capacity for experiencing unusual sensations along with ordinary ones.

Müller-Lyer Illusion

A visual illusion where lines of the same length appear to be different lengths due to the orientation of arrow-like figures at their ends.

Culture

The shared values, traditions, norms, customs, arts, history, folklore, and institutions of a group of people that are passed down from generation to generation.