When There Is an Inflationary Gap

question 2

Multiple Choice

When there is an inflationary gap

• A)we are spending too much and taxes should be raised.
• B)we are spending too much and taxes should be lowered.
• C)we are spending too little and taxes should be raised.
• D)we are spending too little and taxes should be lowereD.

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Definitions:

PST

Provincial Sales Tax, a tax levied by some provinces in Canada on the sale of goods and services.

GST

A tax on goods and services meant for domestic consumption, the Goods and Services Tax is a value-added tax charged on most products and services.

Grade Point Average

A numerical calculation that represents the average value of the accumulated final grades earned in courses over time, standardized on a scale.

Letter Grades

Letter Grades are symbols used in educational institutions to represent the quality of a student's work or performance, ranging typically from A (excellent) to F (failure).