When the economy is going through recessionary gap, which of the below policy is more likely to be implemented? a. Contractionary fiscal policy b. Contractionary monetary policy C. Expansionary fiscal policy

When the economy is going through recessionary gap, which of the below policy is more likely to be implemented? a. Contractionary fiscal policy b. Contractionary monetary policy C. Expansionary fiscal policy

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter30: Government Budgets And Fiscal Policy

Section: Chapter Questions

Problem 30RQ: Under what general macroeconomic circumstances might a government use expansionary fiscal policy?...

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When the economy is going through recessionary gap, which of the below policy is more likely
to be implemented?
a. Contractionary fiscal policcy
b. Contractionary monetary policy
C. Expansionary fiscal policy
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