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Zina [86]
1 year ago
6

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ______

__ and real GDP to be ________.
Business
1 answer:
Alex1 year ago
3 0

Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be _<u>higher</u><u>_</u>and real GDP to be <u>higher.</u>

<h3>
What is Expansionary fiscal policy ?</h3>

Expansionary fiscal policy can be defined as the type of fiscal policy in which government intend to increase the aggregate money supply while on the other hand cut or reduce the tax rate for the purpose of economy growth.

In a situation were real GDP fall below potential real GDP this tend to lead to increase in both inflation rate and real GDP.

Inconclusion the inflation rate will be _<u>higher</u><u>_</u>and real GDP will be <u>higher.</u>

<h3 />

Learn more about Expansionary fiscal policy here:brainly.com/question/546292?source=archive

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Answer and Explanation:

The preparation of production budget is shown below:-

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Total Units to be

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5 0
2 years ago
Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it wou
masha68 [24]
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if the required reserve ratio is 10 percent the banking system currently has excess reserves equal to
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Answer:

Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high. Transcribed image text: If the required reserve ratio is 10 percent, the banking system currently has excess reserves equal to: $10 billion.

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