Fiscal policy and/or monetary policy:
A) change aggregate demand to reduce or eliminate output gaps.
B) change government expenditure, taxes and government budgets.
C) change interest rates and money supply.
D) all of the above.
Correct Answer:
Verified
Q67: Q68: Q69: The elimination of a recessionary gap without Q70: The elimination of an inflationary gap through Q71: The speed with which an economy adjusts Q73: Assume that the economy is currently in Q74: The interest-rate effect is one of the Q75: A rise in domestic prices relative to Q76: An increase in net indirect taxes will Q77: A change in indirect taxes and environmental
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