Which of the following would be most likely to induce Congress and the president to conduct contractionary fiscal policy? A significant
A)decrease in oil prices.
B)decrease in real GDP.
C)increase in inflation.
D)increase in labor productivity.

Question

Quizplus · Accepted Answer

A significant increase in inflation would most likely induce Congress and the president to conduct contractionary fiscal policy to cool down the economy by reducing spending or increasing taxes.

Which of the Following Would Be Most Likely to Induce