If an economy is experiencing inflation, Group of answer choices a) aggregate demand is below full-employment and the government
will increase spending and decrease taxes. b) aggregate demand is above full-employment and the government will increase spending and decrease taxes. c) aggregate demand is below full-employment and the government will decrease spending and increase taxes. d) aggregate demand is above full-employment and the government will decrease spending and increase taxes.
If an economy is experiencing inflation, aggregate demand is above full-employment and the government will increase spending and decrease taxes.
Answer: Option B
<u>Explanation:</u>
The inflationary gap occurs when total demand is greater than the level of the outcome at full employment. Therefore, inflationary gap is the estimation of the excess amount of total demand over total supply at full employment. The hike in the amount of discretionary income for both consumers and business results from the government’s expansionary fiscal policy.
When government or pivotal authority slit taxes the investment for capital improvement, new hiring or employee’s payment reimbursement is processed by businesses and consumers may spend more for buying goods. The government can also encourage economy by investing in infrastructure projects. Such actions can result in a price hike due to the high demand for goods and services.
Answer: the eastern woodlands have 4 seasons including cold winters and hot summers. it has lots of rain, which keeps rivers running, and forests growing.
The number 1A1 represents Pearl Harbor in Hawaii. It was the site of a surprise attack by the Japanese military in 1941 that led to the United States' entrance into World War II. Hawaii became a state in 1959.
On the other end of the pre-development definition is the assumption that land disturbance has previously occurred with the land use in place at project initiation
