If Real GDP Is Less Than Potential GDP, Which of the Following

question 67

Multiple Choice

If real GDP is less than potential GDP, which of the following fiscal policies would increase real GDP?

• A)a decrease in taxes
• B)an increase in government expenditures
• C)a fall in the interest rate
• D)Both A and B are correct
• E)Both B and C are correct.

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Definitions:

Last Month

A reference to the calendar month immediately preceding the current one.

Times A Day

A frequency measure indicating the number of times an event occurs within a single day.

Inferential Statistics

A branch of statistics that uses a random sample of data taken from a population to describe and make inferences about that population.

Descriptive Statistics

Statistical methods that summarize and describe the features of a data set, including measures of central tendency and variability.