• Question 2
• Which of the following policies would you most likely consider for a country in a recessionary gap in order to restore growth in the short run?
  1. Fiscal expansionary policy and monetary restrictive policy.
  2. Fiscal restrictive policy and monetary expansionary policy.
  3. Fiscal and monetary restrictive policies.
  4. Fiscal and monetary expansionary policies.
• question 3 :Suppose that you are in charge of economic policy in your country and the only information you have is that there is an inflationary gap, and GDP is growing well above its potential, what is the most likely measure you would consider:
  1. Restrictive monetary policy.
  2. A combination of expansive fiscal policy and structural reforms.
  3. Expansive fiscal policy.
  4. Expansive monetary policy.
• question 4 Which of the following policies would you most likely consider for a country in a recessionary gap in order to restore growth in the short run?
  1. Monetary restrictive policy.
  2. Structural reforms.
  3. A reduction in public spending.
  4. Fiscal expansionary policy.