Respuesta :
To eliminate a recessionary gap, the Government can increase government expenditures on goods and services or decrease taxes. Thus, Option D is the correct statement.
What is the meaning of recession?
A recession refers to a business cycle contraction while there may be a popular decline in economic activity. Recessions usually arise while there may be a full-size drop in spending.
A recession is a big decline in financial interest that unfold throughout the economy, lasting a range of months, typically seen in actual GDP, actual income, employment, business production, and wholesale-retail sales.
Thus, To eliminate a recessionary gap, the Government can increase government expenditures on goods and services or decrease taxes. Thus, Option D is the correct statement.
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