When the government considers whether it should change its spending in response to a recession,it must weigh the tradeoff between ____________ and ________________.
A)faster recovery time;inflation
B)more output;higher prices
C)more output;lower prices
D)faster recovery time;lower prices

Question

Quizplus · Accepted Answer

Increasing government spending can lead to a faster recovery time by boosting economic activity, but it can also lead to inflation if the economy overheats.

When the Government Considers Whether It Should Change Its Spending