Historically, Keynesian economists have argued that government spending will stimulate aggregate demand more than tax cuts because

a. government spending will stimulate aggregate demand more quickly than a tax cut.
b. there are fewer adverse side effects to an increase in government spending.
c. all of the spending will add to aggregate demand, but a portion of the tax cut will be saved.
d. an increase in government spending can quickly be reversed once the economy has recovered.


C

Economics

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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for frozen yogurt. Which panel describes what happens in the market for frozen yogurt when the price of ice cream, a substitute product, increases?

A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)

Economics

Which of the following correctly describes the relationship between private-sector spending and the federal budget?

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Economics

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Answer the following statement true (T) or false (F)

Economics