If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should
If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should reduce aggregate demand by cutting government spending or raising taxes.
Question
Updated 181 days ago|1/21/2018 9:22:47 AM
Flagged by Wallet.ro [1/20/2018 11:20:17 AM], Edited by jeifunk [1/21/2018 9:22:47 AM]
Rating
3
If the economy is experiencing an inflationary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should reduce aggregate demand by cutting government spending or raising taxes.
Added 182 days ago|1/20/2018 11:20:15 AM
Confirmed by jeifunk [1/21/2018 9:53:52 AM]

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