If Real GDP Exceeded Potential Real GDP and Inflation Was

question 12

Multiple Choice

If real GDP exceeded potential real GDP and inflation was increasing,which of the following would be an appropriate fiscal policy?

• A)a decrease in the money supply and an increase in the interest rate
• B)an increase in government spending
• C)an increase in taxes
• D)an increase in oil prices

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Definitions:

Refer

The act of directing someone to a different source of help, service, or information that is more suited to their needs.

Limit Debate

The practice of setting restrictions on the length or scope of a discussion to focus decision-making or control the flow of conversation.

Group Development

The stages through which a group goes as it matures, often including forming, storming, norming, performing, and adjourning.

Conflict

A situation or process in which individuals, groups, or interests oppose each other due to differing needs, beliefs, or objectives.