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To address a recessionary gap, the appropriate fiscal policy would be an increas

ID: 1099096 • Letter: T

Question

To address a recessionary gap, the appropriate fiscal policy would be an increase in: A. personal taxes. B. corporate taxes. C. government spending. D. interest rates. 8. The effect of expansionary fiscal policy is to shift aggregate: A. supply to the left. B. supply to the right. C. demand to the left. D. demand to the right. To address a recessionary gap, the appropriate fiscal policy would be an increase in: A. personal taxes. B. corporate taxes. C. government spending. D. interest rates. 8. The effect of expansionary fiscal policy is to shift aggregate: A. supply to the left. B. supply to the right. C. demand to the left. D. demand to the right. To address a recessionary gap, the appropriate fiscal policy would be an increase in: A. personal taxes. B. corporate taxes. C. government spending. D. interest rates.

Explanation / Answer


C. government spending.
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