Economics (M.Phil./Ph.D.) 2015 Panjab University Entrance Exam With Answers

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6.

An inflationary gap can be eliminated by :

A: Equal increases in net tax revenues and government spending
B: An increase in government spending and a decrease in lump sum taxes
C: Equal decreases in next tax revenues and government spending
D: A decrease in lump sum taxes

The answer is: C

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