To Close a Contractionary Gap Using Fiscal Policy,the Government Can

question 98

Multiple Choice

To close a contractionary gap using fiscal policy,the government can

• A)increase taxes by the size of the gap
• B)decrease taxes by the size of the gap
• C)increase taxes by more than the size of the gap
• D)decrease taxes by less than the size of the gap
• E)decrease taxes by more than the size of the gap

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