Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply. a)Additional spending on national park facilities b)A tax hike
Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply. a)Additional spending on national park facilities b)A tax hike
Chapter15: Fiscal Policy
Section: Chapter Questions
Problem 1SQ
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Suppose the economy had been producing at potential output but is now experiencing a recession. Which of the following are discretionary fiscal policies that could bring the economy closer to potential output? Check all that apply.
a)Additional spending on national park facilities
b)A tax hike
c)A reduction in government purchases
d)A tax cut
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