Economics

How To Close GDP Gap?

To stabilize the economy, fiscal policy entails employing either taxes or government spending. Fiscal policy that is expansionary can close recessionary gaps (by lowering taxes or increasing spending), while fiscal policy that is contractionary can close inflationary gaps (using either increased taxes or decreased spending). What can fiscal policy do to close the GDP gap? […]

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How Will Infrastructure Bill Affect Inflation?

“A well-structured infrastructure bill would enhance the supply side of the economy, lowering inflationary pressures, by making it less expensive for firms to operate, allowing them to raise their output per hour and putting downward pressure on consumer prices.” Is spending on infrastructure inflationary? The infrastructure measure should have a counter-inflationary effect over time. Again,

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