Which of the following policies would Keynes's followers support when an increase in business optimism shifts the aggregate demand curve away from long-run equilibrium?
A) Increase taxes
B) Increase government expenditures
C) Increase the money supply
D) Lower interest rates
Correct Answer:
Verified
Q193: If the MPC is 0.50 and there
Q194: The Employment Act of 1946 states that
A)the
Q195: If a $1,000 increase in income leads
Q196: A tax cut shifts the aggregate demand
Q197: When taxes increase, interest rates
A)decrease, making the
Q199: If net exports fall $40 billion, the
Q200: Assume there is a multiplier effect, some
Q201: It is likely that a constitutional amendment
Q202: An example of an automatic stabilizer is
A)unemployment
Q203: Critics of stabilization policy argue that
A)policy affects
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents