Details of this Paper

If total expenditures are greater than potential GDP

Description

solution


Question

If total expenditures are greater than potential GDP, the proper fiscal;policy is to;a) raise taxes or raise government spending;b) lower taxes or lower government spending;c) lower interest rates or raise taxes;d) raise taxes or lower government spending;e) lower interest rates or raise government spending;Macroeconomic policy is difficult because of;a) inaccurate multiplier estimates;b) timing problems;c) disagreements over potential GDP;d) uncertain forecasts;e) all of the above;If taxes and government spending rise by same amount what will happen to;GDP?;a) it will increase;b) it will remain the same;c) it will decrease

 

Paper#24556 | Written in 18-Jul-2015

Price : $27
SiteLock