Keynesian analysis suggests that a planned budget surplus
a. will affect aggregate demand only if the money supply decreases by the size of the surplus.
b. will stimulate both consumption and income.
c. will stimulate output and employment.
d. is proper during periods of inflation but may increase unemployment if timed improperly.
D
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In the United States, which agency determines whether domestic firms have been harmed by subsidies and dumping or by a sudden surge in imports and whether protection is warranted?
What will be an ideal response?
A decrease in money demand will shift the
A) IS curve to the left. B) IS curve to the right. C) LM curve to the left. D) LM curve to the right.
The burden of a tax per unit of output will fall heavily on consumers when demand is relatively ________ and supply is relatively ________
A) inelastic; elastic B) inelastic; inelastic C) elastic; elastic D) elastic; inelastic
B. Structural unemployment.
A. Frictionally unemployed B. Structurally unemployed C. Cyclical unemployed D. Seasonally unemployed