To Close an Expansionary Gap Using Fiscal Policy,the Government Can

question 54

Multiple Choice

To close an expansionary gap using fiscal policy,the government can

• A)increase government spending
• B)increase government spending and decrease taxes at the same time
• C)decrease taxes
• D)decrease government spending or increase taxes
• E)decrease government spending by the size of the gap

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Definitions:

Consumers

Individuals or groups who purchase goods and services for personal use.

Employees

Individuals who work for a company or another person and receive compensation for their labor or services.

State

A politically organized body of people under a single government, often recognized as a sovereign entity.

Acids

Substances that release hydrogen ions (H+) when dissolved in water, possessing a sour taste and able to neutralize bases.