Assume the economy has an inflationary gap. After some time, the gap is gone, and the price level has increased. Which of the following most likely occurred?
A. The government increased tax rates.
B. The government decreased spending.
C. The economy auto-corrected.
D. The Fed increased the discount rate.
E. The government decreased transfers.
F. The Fed bought U.S. government securities.

Question

05-07-2024
Business

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Assume the economy has an inflationary gap. After some time, the gap is gone, and the price level has increased. Which of the following most likely occurred?
A. The government increased tax rates.
B. The government decreased spending.
C. The economy auto-corrected.
D. The Fed increased the discount rate.
E. The government decreased transfers.
F. The Fed bought U.S. government securities.

Sagot :

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