Consider an economy facing a recessionary gap in the short-run. Expansionary fiscal policy leads to _____ while an economy’s self-correcting mechanism leads to _____ Question 39 options: a) deflation; cost-push inflation b) demand-pull inflation; deflation c) deflation; demand-pull inflation d) demand-pull inflation; cost-push inflation

Consider an economy facing a recessionary gap in the short-run. Expansionary fiscal policy leads to _ while an economy’s self-correcting mechanism leads to _ Question 39 options: a) deflation; cost-push inflation b) demand-pull inflation; deflation c) deflation; demand-pull inflation d) demand-pull inflation; cost-push inflation

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter15: Fiscal Policy

Section: Chapter Questions

Problem 5SQ

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