Asked by
Abdulla Janahi
on Oct 13, 2024
Verified
Which statement is true?
A) When there is a recessionary gap,we are spending too much and taxes should be raised.
B) When there is a recessionary gap we are spending too little and taxes should be raised.
C) When there is a recessionary gap,we are spending too much and taxes should be lowered.
D) When there is a recessionary gap we are spending too little and taxes should be lowered.
Recessionary Gap
A situation in economics where aggregate output is below potential output, leading to unemployment and underused resources.
Taxes
Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
- Acquire knowledge on the significance and consequences of government spending and taxation as part of fiscal policy.
Verified Answer
QA
Learning Objectives
- Acquire knowledge on the significance and consequences of government spending and taxation as part of fiscal policy.