Question: a. Based on the information provided, determine which type of fiscal policy would be most appropriate: expansionary fiscal policy, contractionary fiscal policy, or neither: A.


a. Based on the information provided, determine which type of fiscal policy would be most appropriate: expansionary fiscal policy, contractionary fiscal policy, or neither: A. Volcania 's unemployment rate has reached 15% last month B. Volcania 's real Gross Domestic Product is rising at an average rate and the inflation is near 2% C. Volcania 's inflation rate reached 20% per month in the last quarter v 1. Contractionary fiscal policy 2. Neither ? v 3. Expansionary fiscal policyb. Voicania '9 real Gross Domestic Product Fell by 5% in the last 12 months: choose the appropriate policy for the situation: A. The government oFVoicania cuts Federal income taxes For middie income group B. The government oFVolcania increases Federal income taxes for high income groups 1. Not appropriate 2. Appropriate
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
