Theoretically, to eliminate a recessionary gap, the Fed could ____________ the money supply, and to eliminate an inflationary gap, the Fed could _____________ the money supply.Group of answer choicesincrease; decreaseincrease; increasedecrease; increasedecrease; decreasenot change; not change

To solve a recessionary gap, by using Fiscal Policy, the Federal government would decrease taxes and decrease government expenditure. Group of answer choicesTrueFalse

Government budget deficits tend toGroup of answer choicesincrease in recessionsincrease when there is an expansionary output gap.None of the others is correct.decrease in recessionsremain in balance irrespective of business cycles

Under expansionary monetary supply,a.the economy’s money supply is increased by reducing interest rates,b.the economy’s money supply is reduced by reducing interest rates,c.the economy’s money supply is reduced by increasing interest rates,d.the economy’s money supply is increased by increasing interest rates,

Keynes asserts that the inflationary gap is brought on by .a.a lack of demandb.a surplus of supplyc.a surplus of demandd.a lack of supply

To stop hyperinflation,Group of answer choicesall of the given choices is correctstop printing moneythe central bank must reduce the rate of money growthsell treasury bonds