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07.01.2020 14:06
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An appropriate fiscal policy response to a recessionary gap would be to decrease
An appropriate fiscal policy response to a recessionary gap would be to decrease which of these?
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michael4443
4,4(6 marks)
decrease taxes
Explanation:
A recessionary gap refers to the macroeconomic concept that defines an economy that runs at a point below its saturation of high employment. In a state of a recessionary deficit, the amount of actual gross domestic product (GDP) is smaller than that of full jobs, which in the long term places downwards pressure on costs.
Thus, decreasing taxes would lead to more money on hand and liquidity to individuals which would help in creating demand in the market so that prices could then be adjusted to normal levels again.
karsenbeau
4,6(29 marks)
The two pink or Rose colored ones are parallelograms
Step-by-step explanation:
They both have lines that are one pair of parallel lines to each other
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