What would be appropriate government action to close an inflationary gap? Multiple Choice О Use policy to decrease aggregate supply. Use policy to decrease potential GDP. Use counter-cyclical fiscal policy to decrease aggregate demand. Use counter-cyclical fiscal policy to increase aggregate demand.
What would be appropriate government action to close an inflationary gap? Multiple Choice О Use policy to decrease aggregate supply. Use policy to decrease potential GDP. Use counter-cyclical fiscal policy to decrease aggregate demand. Use counter-cyclical fiscal policy to increase aggregate demand.
Chapter1: Making Economics Decisions
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Transcribed Image Text:What would be appropriate government action to close an inflationary gap?
Multiple Choice
О
Use policy to decrease aggregate supply.
Use policy to decrease potential GDP.
Use counter-cyclical fiscal policy to decrease aggregate demand.
Use counter-cyclical fiscal policy to increase aggregate demand.
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