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28 Sep 2019
Say that the U.S. is in a typical expansion with a bit of inflation. Then, fiscal policy changes and T rises a bit. Which of the following is most likely?
1) Less Inflation
2) Less growth
3) Recession
4) Deflation
5) A larger increase in prices
6) A larger increase in real GDP
Say that the U.S. is in a typical expansion with a bit of inflation. Then, fiscal policy changes and T rises a bit. Which of the following is most likely?
1) Less Inflation
2) Less growth
3) Recession
4) Deflation
5) A larger increase in prices
6) A larger increase in real GDP
1
answer
0
watching
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Joshua StredderLv10
28 Sep 2019
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According to classical economists, which one of the following is the correct (recommended) sequence of occurrences?
A. | The economy is in a recession, production falls and unemployment rises ==> the government increases spending, the money supply, and lowers taxes ==> total spending rises ==> employment rises ==> GDP rises |
B. | The economy is in a recession, production falls and unemployment rises ==> prices, wages, and interest rates decrease ==> business costs fall, profits rise, borrowing and consumer spending rise ==> employment and production rise ==> GDP rises |
C. | The economy is in an expansion, incomes are rising and production increases ==> the government decreases spending ==> less inflation ==> the economy continues to expand |
D. | The economy is in a recession, production falls and unemployment rises ==> spending falls ==> more layoffs ==> less production ==> more layoffs ==> deeper recession |
E. | The economy is in an expansion ==> prices rise ==> consumer spending falls ==> production falls ==> the economy contracts (recession) |