If the Economy Is Experiencing an Inflationary Gap and the Government

question 218

Multiple Choice

If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should

• A)reduce aggregate demand by cutting government spending or raising taxes.
• B)reduce aggregate demand by increasing government spending or cutting taxes.
• C)increase aggregate supply by cutting government spending or raising taxes.
• D)increase aggregate supply by increasing government spending or lowering taxes.

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Definitions:

Indicated

To show, point out, or make clear in a specific context. The term is general and not strictly a programming key term unless used in specific contexts like "indicated errors."

For Loop

A control flow statement for specifying iteration, allowing code to be executed repeatedly based on a boolean condition.

Enhanced Loop

A simplified form of a loop that allows for easy iteration over collections and arrays in programming languages like Java, often referred to as the "for-each" loop.

Java Statements

Instructional lines in Java that direct the program to perform particular actions.