What actions would a modern Keynesian economist advocate to cure a recessionary gap?
What will be an ideal response?
A modern Keynesian economist would advocate shifting the aggregate demand curve to the right by cutting taxes or boosting government spending. She or he would also advocate increasing the money supply in an attempt to lower interest rates and increase investment, thus providing an additional boost to aggregate demand.
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GA 400 is a state highway that runs through part of Atlanta,GA. In order to travel on one portion of GA 400, drivers are required to pay a toll. It follows that section of GA 400 will exhibit non-rivalry in consumption if
a. the road is congested. b. the road is not congested. c. the toll is decreased. d. the the toll is completely removed.
Refer to Figure 16-1. An increase in taxes would be depicted as a movement from ________, using the static AD-AS model in the figure above
A) C to D B) E to B C) B to C D) A to B E) B to A
An insolvent bank's assets are worth less than its liabilities
a. True b. False Indicate whether the statement is true or false
The consumption function shows the relationship between
a. planned consumption expenditures and disposable income. b. permanent income and savings. c. business inventory and real GDP. d. aggregate demand and aggregate consumption.