Suppose There Currently Is an Inflationary Gap

question 163

Multiple Choice

Suppose there currently is an inflationary gap. What could the government do to bring the overall price level down?

• A) nothing
• B) Increase income taxes.
• C) Increase government spending.
• D) Reduce the nation's aggregate supply.

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Definitions:

Basic Elements

Fundamental components or building blocks of a broader concept, structure, or system.

Titchener

Titchener, Edward Bradford, was a psychologist who founded structuralism, an early school of psychology focusing on introspection to identify the basic components of consciousness.

Consciousness

The condition or characteristic of being conscious or cognizant of an external object or something internal to oneself.

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An unbroken flow or sequence of content or information, often used in context to streaming media online.