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Subject - Economics:

Macroeconomics

MCQ - 206-4216

Question:

Which of the following fiscal policy combinations would be most likely to slowly increase real GDP without putting tremendous upward pressure on the price level?

  1. Increase government spending with a matching decrease in taxes.
  2. Decrease government spending with a matching increase in taxes.
  3. Increase government spending with no change in taxes.
  4. Decrease government spending with a matching increase in taxes.
  5. Increase taxes with a matching increase in government spending.

Correct Answer: E

Explanation:

This balanced budget policy increases real GDP at a slower rate than the other expansionary options.

Record Performance

269 MCQ for effective preparation of the test of Macroeconomics of Economics section.

Read the MCQ statement: Which of the following fiscal policy combinations would be most likely to slowly increase real GDP without putting tremendous upward pressure on the price level? , keenly and apply the method you have learn through the video lessons for Macroeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 206-4216.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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