Which of the following would help eliminate a recessionary gap?
A)An increase in consumer spending.
B)An increase in investment.
C)An increase in exports.
D)An increase in government spending
E)All of the above.

Question

Quizplus · Accepted Answer

To eliminate a recessionary gap, an increase in overall economic activity is needed. This can be achieved through any or all of the above choices. An increase in consumer spending, investment, exports, and government spending will all contribute to increased economic activity, thus eliminating the gap. Therefore, the best choice is E, as all of the above options can help eliminate a recessionary gap.

Which of the Following Would Help Eliminate a Recessionary Gap