Suppose that there’s a recessionary gap, and the country wishes to produce its potential output. Which of the following policy initiatives might help it reach this goal? A.the government increases taxes on consumers and corporations. B.the government initiates policies that encourage private investment spending. C.the government cuts spending programs. D.the government initiates policies that discourage private investment spending.
Suppose that there’s a recessionary gap, and the country wishes to produce its potential output. Which of the following policy initiatives might help it reach this goal? A.the government increases taxes on consumers and corporations. B.the government initiates policies that encourage private investment spending. C.the government cuts spending programs. D.the government initiates policies that discourage private investment spending.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose that there’s a recessionary gap, and the country wishes to produce its potential output. Which of the following
policy initiatives might help it reach this goal?
A.the government increases taxes on consumers and corporations.
B.the government initiates policies that encourage private investment spending.
C.the government cuts spending programs.
D.the government initiates policies that discourage private investment spending.
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