The desired fiscal restraint is equal to:
A. Excess AD times the multiplier.
B. Desired AD reduction.
C. Excess AD divided by the multiplier.
D. GDP gap divided by the multiplier.
Answer:C
The desired fiscal restraint is equal to:
A. Excess AD times the multiplier. B. Desired AD reduction. C. Excess AD divided by the multiplier. D. GDP gap divided by the multiplier.