Which of the following statements about how fiscal policy should most appropriately be used in a crisis is correct? a. If fiscal policy is used appropriately, a fiscal deficit should appear during recessionary gaps and a surplus during inflationary gaps b. Fiscal policy should be used at any and all points of the cycle to accelerate growth c. None of these statements is correct d. If fiscal policy is used appropriately, a fiscal surplus should appear during recessionary gaps and a fiscal deficit during inflationary gaps
Which of the following statements about how fiscal policy should most appropriately be used in a crisis is correct? a. If fiscal policy is used appropriately, a fiscal deficit should appear during recessionary gaps and a surplus during inflationary gaps b. Fiscal policy should be used at any and all points of the cycle to accelerate growth c. None of these statements is correct d. If fiscal policy is used appropriately, a fiscal surplus should appear during recessionary gaps and a fiscal deficit during inflationary gaps
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Which of the following statements
about how fiscal policy should most
appropriately be used in a crisis is
correct?
a. If fiscal policy is used
appropriately, a fiscal deficit
should appear during
recessionary gaps and a
surplus during inflationary gaps
b. Fiscal
policy should be used at any
and all points of the cycle to
accelerate growth
c. None of these statements is
correct
d. If fiscal policy is used
appropriately, a fiscal surplus
should appear during
recessionary gaps and a fiscal
deficit during inflationary
gaps
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