Which of the Following Fiscal Policy Actions Would Definitely Cause

question 4

Multiple Choice

Which of the following fiscal policy actions would definitely cause a reduction in the size of an inflationary gap?

• A)cuts in taxes and increases in government spending
• B)increases in government spending
• C)increases in taxes
• D)cuts in taxes

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Definitions:

Task-Oriented

Focused primarily on accomplishing specific objectives, often characterized by a high level of organization and attention to detail.

Relations-Oriented

A leadership or management style that emphasizes maintaining positive relationships within a team or organization.

Diagnose

To diagnose means to identify the nature of a problem, condition, or disease through examination of the symptoms or available data.

Meaningfulness

The perception of having a purposeful and significant impact through one's actions or work.