Reducing net taxes and reducing government purchases are both effective ways of eliminating an expansionary gap.
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Q43: The government can close an expansionary gap
Q44: To close an expansionary gap,the government can
A)increase
Q45: Suppose that instead of using discretionary fiscal
Q47: If net taxes exceed government purchases,
A)the price
Q49: If fiscal policy is used to close
Q50: What set of policies could the government
Q51: To close an expansionary gap using fiscal
Q121: Expansionary and contractionary gaps are automatically eliminated
Q129: One disadvantage of discretionary fiscal policy is
Q134: A decrease in government purchases can close
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