According to the Keynesian model, in what ways will expansionary fiscal policy stimulate aggregate demand?
The two components of expansionary fiscal policy are increased government spending and reduced taxes. Increased spending stimulates aggregate demand directly since government purchases are a component of aggregate demand. Reduced taxes also stimulate aggregate demand indirectly; lower income taxes stimulate consumption, and lower business taxes stimulate private investment.
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The amount of the external marginal cost per ton illustrated in the above figure is
A) $8.00 per ton. B) $12.00 per ton. C) $16.00 per ton. D) zero because no external cost is illustrated.
Demand shows
a. the various quantities people are willing and able to buy at various prices, ceteris paribus. b. the various quantities people are able and willing to buy at various prices. c. the various prices people face when buying. d. how much people buy at one specific price.
_______________ is the name given to active efforts by government or businesses that give special rights to minorities in hiring and promotion to make up for past discrimination.
a. Antidiscrimination legislation b. The Equal Rights Amendment c. Affirmative action d. Civil rights
In the competitive price-taker model, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue curve is
a. indeterminate. b. an upward-sloping curve. c. a downward-sloping curve. d. the same as the firm's demand curve.