185k views
4 votes
The economy is reccisionary gap. what are the fiscal policies avaible to the government?

User Exscape
by
8.0k points

1 Answer

1 vote

Answer:

Offsetting Recessionary Gaps

Policymakers may choose to implement a stabilization policy (expansionary policy) to close the gap and increase real GDP. Monetary authorities might increase the amount of money in circulation in the economy by lowering interest rates and boosting government spending.

User Adrii
by
8.3k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.