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A country is below its potential GDP level. One possible response of the government is to conduct ______ by _________. a) contractionaryfiscal policy; decreasing government

A country is below its potential GDP level. One possible response of the government is to conduct ______ by _________.

a) contractionaryfiscal policy; decreasing government expenditure

b) contractionarymonetarypolicy; increasing the tax rate

c) expansionary fiscal policy;increasingpersonalincome tax

d) contractionaryfiscal policy; decreasing transfer payments

e) expansionary fiscalpolicy;increasing government expenditure

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