According to Keynes, in order to get the economy out of a recession, the government should:
a. follow an expansionary fiscal policy
b. encourage firms to export to other nations.
c. follow an contractionary fiscal policy.
d. follow a contractionary monetary policy.
e. not interfere in the market and let the market system heal itself.
a
You might also like to view...
The unemployment rate is an example of a Federal Reserve
A) tool. B) operating target. C) intermediate target. D) ultimate objective.
Any commonly accepted good that acts as a medium of exchange, a measure of value, and a store of value is known as
a. money b. currency c. acquisitive d. fiat e. M1
Wage rates fall. This increases __________ and the __________ curve shifts rightward
A) aggregate demand (AD); AD B) short-run aggregate supply (SRAS); AD C) short-run aggregate supply (SRAS); SRAS D) employment; AD E) none of the above
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline