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madam [21]
3 years ago
9

Suppose the government purposely changes the economy's cyclically adjusted budget from a deficit of 3 percent of real GDP to a s

urplus of 1 percent of real GDP. The government is engaging in a(n) ____
Business
1 answer:
natulia [17]3 years ago
6 0

Answer:

Contractionary Fiscal Policy is the correct answer.

Explanation:

It is a fiscal policy that includes increasing taxes and decreasing the expenditure to curb inflationary pressures. As the taxes are increased, households have less income to spend and the lower disposable income affects consumption. Tax increments also lead to less profit for businesses. GDP includes the consumption and private investment hence both of them fall as a result. The government tries to magnify the fall in GDP with the multiplier effect.

If the government decreases the expenditures then it would lead to a decrease in GDP, as the government expenditures are a part of GDP.

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oksano4ka [1.4K]

Answer:

Value

Explanation:

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3 0
3 years ago
A ____ consist of the actions a person is expected to perform in a group.
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B. A persons Role is the actions they are expected to perform
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name some differences between the requirements and responsibilities between volunteer,intern, and paid jobs
DIA [1.3K]

Answer:

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8 0
3 years ago
The New Fund had average daily assets of $2.2 billion in the past year. If New Fund’s expense ratio was 1.1% and the management
Marizza181 [45]

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Explanation:

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8 0
3 years ago
Many economists attribute part of the recent increase in European unemployment to A high birthrates. B slow rates of technologic
marta [7]

Answer:

The correct answer is C) generous benefits for unemployed workers.

Explanation:

Many people in a position to work see state aid as the way to dedicate themselves to household chores, instead of working in a company. This situation has a negative impact on the unemployment indicator, making one directly believe that there is a problem in this regard, when in fact it is located elsewhere. Governments should execute actions in order to achieve a better insertion of people in the labor field, and that they also see that there is a very big difference compared to the facilities offered by the state for their maintenance.

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3 years ago
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