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Fiscal policy includes all of the following except. a. changing
Fiscal policy includes all of the following except.
a. changing taxes
b. changing government spending
c. policies that influence aggregate demand
d. policies that influence the rate of growth of the quantity of money in circulation.
If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment back to the long-run equilibrium it should
a. reduce aggregate demand by cutting government spending or raising taxes.
b. reduce aggregate demand by increasing government spending or cutting taxes.
c. increase aggregate supply by cutting government spending or raising taxes
d. increase aggregate supply by increasing government spending or lowering taxes.
in 2009, Congress passed a bill that involved government spending increases and tax cuts with the purpose of stimulating the US economy. This policy is an example of
a. an automatic stabilizer
b. contractionary fiscal policy
c. expansionary fiscal policy
d. expansionary monetary policy.
This question was answered on: Feb 21, 2020
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