Question

Governments would decrease government expenditures to fight a/an ______________ gap. Due to this change in G, the budget balance (BB) would _____________ .

Answer 1

Governments would decrease government expenditures to fight an inflationary gap and due to this change in G, the budget balance (BB) would reduce.

What is budget?

It should be noted that a budget simply shows the revenue and expenditure for a period of time.

In this case, governments would decrease government expenditures to fight an inflationary gap and due to this change in G, the budget balance would reduce.

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