According to the Keynesian view, if policy makers thought the economy was about to fall into a recession, which of the following would be most appropriate?
a. a change in government spending and taxation that will lead to a budget surplus
b. a planned increase in the budget deficit
c. reducing government expenditures
d. balancing the budget
B
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All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory. B) It assumes demand is known with certainty. C) It accounts for seasonal changes in demand. D) It assumes demand is spread evenly over a time period.
Before about 1975
a. any federal deficits were at least 5 percent of GDP. b. most federal deficits were less than 2 percent of GDP. c. the federal government never ran deficits. d. the federal government always ran a surplus. e. any federal deficits were at least 7 percent of GDP.
As far as redistribution is concerned, if the inflation rate is lower than anticipated...
What will be an ideal response?
Suppose, compared to last year, the price of beer has increased 4%, the price of jeans has increased 7%, and the price of video rentals has decreased 1%
On the basis of this data, what can an economist conclude about the rate of inflation in the overall economy? A) Nothing. B) The inflation rate is 4%. C) The inflation rate is 7%. D) The inflation rate is 10%. E) The inflation rate is 11%.