Suppose you are a member of the Council of Economic Advisors and you are trying to get the US economy out of a recession and increase RGDP. What Keynesian macroeconomic policy could be advised to the government?
reduce the tax rate and increase government spending (expansionary fiscal policy)
raise the tax rate and reduce government spending
reduce government spending
raise the tax rate
reduce the tax rate and increase government spending (expansionary fiscal policy)
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Sue offers to pay Al $50 for each painting of his that she sells in her gallery. Each painting sells for $75. The cost to Al of producing each painting is $55. Which of the following statements is TRUE about this contract?
A) This contract is efficient. B) This contract maximizes joint profit. C) Al will not participate in this contract. D) This is a fixed-fee contract.
If nominal GDP was $11,500 billion in 2003 and the price level in 2003 was 111.6, then real GDP would have been approximately
A. $9,750 billion. B. $9,795 billion. C. $10,305 billion. D. $10,485 billion.
Saving by households and businesses is called ________ saving.
A. national B. aggregate C. private D. public
You do not worry about how your bank is investing your money because your deposits are federally insured. This is an example of:
A. a positive spillover. B. moral hazard. C. adverse selection. D. irrational behavior.