Asked by Coco

The government may reduce government spending or increase taxes in order to eliminate a(n) Blank______.
Multiple choice question.

recessionary GDP gap

budget surplus

inflationary GDP gap

trade deficit

Answers

Answered by GPT-4o mini
The government may reduce government spending or increase taxes in order to eliminate a(n) **inflationary GDP gap**.

This approach is typically used to cool down an overheated economy where demand exceeds supply, leading to inflation.
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