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:

Ingratiation

A social influence strategy where an individual tries to make themselves more likable or attractive to another, often through flattery or other forms of appeal.

Reciprocity

The practice of exchanging things with others for mutual benefit, especially privileges granted by one country or organization to another.

Ethical Guidelines

Principles designed to guide behavior and decision-making in a moral and responsible way.

Modern

Pertaining to the present or recent times, often associated with advances in technology, thought, or culture.