DP Economics Questionbank
3.6.3 Fiscal policies to close deflationary/recessionary and inflationary gaps
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Description
[N/A]Directly related questions
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18M.1.SL.TZ1.4a:
Explain how expansionary fiscal policy could be used to close a deflationary (recessionary) gap.
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18M.1.SL.TZ2.4a:
Explain how expansionary fiscal policy could be used to close a deflationary (recessionary) gap.
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20N.2.HL.TZ0.1c:
Using an AD/AS diagram, explain how the use of fiscal policy could lower “the high rates of youth unemployment” in South Korea (paragraph [5]).
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22M.2.HL.TZ0.2d:
Using an AD/AS diagram, explain how a reduction in government spending may reduce inflation (Text D, paragraph [4]).
