Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP? O an increase in government purchases O an increase in the supply of money O an increase in individual income taxes O a decrease in transfer payments

Which of the following is an appropriate discretionary fiscal policy if equilibrium real GDP falls below potential real GDP? O an increase in government purchases O an increase in the supply of money O an increase in individual income taxes O a decrease in transfer payments

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 38CTQ: Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending...

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Question

Q21

Which of the following is an appropriate discretionary fiscal policy if
equilibrium real GDP falls below potential real GDP?
O an increase in government purchases
O an increase in the supply of money
O an increase in individual income taxes
O a decrease in transfer payments

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1.6
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