Asked by
Renee Handley
on Oct 13, 2024
Verified
Statement I: To lower a recessionary gap we would raise the C + I + G + Xn line.
Statement II: The best way to eliminate a recessionary gap is to balance the federal budget.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Recessionary Gap
The gap that occurs when an economy's actual output is less than its potential output, indicating underutilized resources.
Federal Budget
A financial statement of the government's estimated revenue and expenditure for a specific fiscal year.
- Determine strategies for controlling and diminishing budgetary shortfalls.
- Comprehend how fiscal policy influences employment levels and economic disparities.
Verified Answer
RM
Learning Objectives
- Determine strategies for controlling and diminishing budgetary shortfalls.
- Comprehend how fiscal policy influences employment levels and economic disparities.