1 answer

Question 19 (2.8 points) If GDP>LRAS, it is called which of the following? O natural rate...

Question:

Question 19 (2.8 points) If GDP>LRAS, it is called which of the following? O natural rate of unemployment full employment O r
Question 19 (2.8 points) If GDP>LRAS, it is called which of the following? O natural rate of unemployment full employment O recessionary gap expansionary gap Question 20 (2.8 points) The use of Government spending and taxes to affect the economy is called O classical economics O progressive income tax fiscal policy stagflation

Answers

a) If the current GDP is at a higher level than the LRAS, it will be considered as an inflationary gap or the expansionary gap in the market, the answer is "D".

b) "C"

Use of the government spending and the use of the taxes are considered as fiscal policy. The answer is "C".  

.

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