Give me correct answer with full explanation otherwise i give downvoteNote:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. What would be appropriate government action to close an inflationary gap?Multiple ChoiceОUse 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.

The objective of the question is to identify the correct government action to close an inflationary…

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.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter16: Expectations Theory And The Economy

Section: Chapter Questions

Problem 10QP

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Give me correct answer with full explanation otherwise i give downvote

Note:-

Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.

Answer completely and accurate answer.

Rest assured, you will receive an upvote if the answer is accurate.