Ask Question
BusinessBusiness
20 November, 18:31

If an economy is experiencing an unemployment rate that is less than the natural rate, then which of the following fiscal policies would you suggest to restore the economy to full employment?

Choose one:

A. Increase taxes.

B. Decrease government spending.

C. Decrease taxes.

D. Increase taxes or decrease government spending.

E. Decrease government spending or decrease taxes.

+2
Answers (1)
  1. 20 November, 21:19
    0
    Answer:C. Decrease taxes

    Explanation:

    When an economy is experiencing unemployment that is less than the natural rate, the right policy is to purse expansionary policies which will make more funds to be available in the economy to increase investment and demand.

    Expansionary policies can be implemented by increasing goverments expenditures and reducing tax, the reduced tax will increase the disposable income of the citizens and invariably investment and demands all things being equal and these are the justification for the chosen option.

    An increase in tax or a reduction in government expenditures will excercebate the unemployment all other things being equal.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “If an economy is experiencing an unemployment rate that is less than the natural rate, then which of the following fiscal policies would ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Laura wants to improve her employees' engagement. to do so, she should try to increase their
Answers (1)
A note payable was issued in payment for services received. The services had a fair value less than the face amount of the note payable. The note payable has no stated interest rate.
Answers (1)
Rosalind company reported revenues of $111,500, expenses of $92,545, and net income of $18,955 for the year. assets totaled $200,000 at the beginning of the year and $246,000 at the end of the year.
Answers (1)
A salesperson at Costco invites you to sample a new cheese and you agree. When she tells you that the cheese is on special in the case behind her, you take a package to purchase. The salesperson appears to have made effective use of
Answers (1)
What is the minimum income needed to support a household called?
Answers (1)
New Questions in Business
Do you overcome obstacles to achieve goals in business
Answers (1)
Danielle takes temporary family leave from her job at Equipment Rentals & Sales Company to care for a newborn baby.
Answers (2)
If a Rancher prevents a thief from taking his cattle he's enforcing Which principle capitalism? Freedom of enterprise Self interest Private property
Answers (1)
How did the captains of industry like j. p. morgan respond to signs that the stock market was about to collapse?
Answers (1)
What caribbean island has a higher standard of living because of its large oil reserves and how much oil does it export?
Answers (1)
Home » Business » If an economy is experiencing an unemployment rate that is less than the natural rate, then which of the following fiscal policies would you suggest to restore the economy to full employment? Choose one: A. Increase taxes. B.
Sign Up Forgot Password?