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MMLU / If the economy were experiencing a recessionary gap choose the option below that…

Problem

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question

If the economy were experiencing a recessionary gap choose the option below that would be an appropriate fiscal policy to eliminate the gap and the predicted impact of the policy on real GDP and unemployment. FISCAL POLICY     REAL GDP     UNEMPLOYMENT

choices

  1. Increase taxes.     Increase     Decrease
  2. Decrease spending.     Decrease     Increase
  3. Decrease taxes.     Increase     Increase
  4. Decrease taxes.     Increase     Decrease

subject

high_school_macroeconomics

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Source and history

Official source

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