Subject - Economics:

Macroeconomics

MCQ - 67-4077

Question:

If current real GDP is $5,000 and full employment real GDP is at $4,000, which of the following combinations of policies is the most likely to have brought the economy to this point?

A decrease in taxes and a lower discount rate
An increase in government spending and an increase in taxes
A decrease in taxes and selling bonds in an open market operation
An increase in government spending and an increase in taxes
A decrease in taxes and a decrease in government spending

Correct Answer: A

Explanation:

With the economy operating beyond full employment, look for a combination of expansionary policies. All of the other choices include a contractionary policy with an expansionary policy, thus making A the most likely culprit.

Previous Question

Next Question

Back to Section

Record Performance

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

Read the MCQ statement: If current real GDP is $5,000 and full employment real GDP is at $4,000, which of the following combinations of policies is the most likely to have br .... y to this point? , 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. 67-4077.

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.

Share This Page

Full Films

TV Serials

Short Films

Upcoming Films