February 19, 2017

Homework Help: Need HELP ASAP - PLEASE ` economics

Posted by BC on Wednesday, July 7, 2010 at 12:35am.

Suppose the economy has been producing its potential, but it is now experiencing a recession. Which of the following is a discretionary fiscal policy that would bring the economy closer to its potential output? Check all that apply.

1) A tax cut
2) A tax increase
3) The sale of bonds by the Fed
4) An additional $10 billion in spending on agricutural subsidies

Any idea even if your not 100% I need help, any help would be sooo appreciated. Thanks

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