Business, 10.05.2021 19:50 adrianvigil6400
When the economy is in a recessionary gap, the government can improve economic outcomes by: increasing the money supply, lowering the interest rate, increasing investment spending and consumption spending, and thus increasing aggregate demand. increasing nominal wages, shifting the short run aggregate supply to the left and thus removing the recessionary gap. increasing taxes and aggregate spending via the multiplier. cutting government expenditure, decreasing investment spending and consumption spending, and thus increasing aggregate supply.
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When the economy is in a recessionary gap, the government can improve economic outcomes by: increasi...
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