Solved

Suppose the Economy Is at a Position Below the Physical

Question 19

Multiple Choice

Suppose the economy is at a position below the physical production possibilities frontier but above the institutional production possibilities frontier.In response to this situation,Keynesian economists may propose that government enact __________ fiscal policy to correct this __________ gap by __________ government expenditures.


A) expansionary; inflationary; increasing
B) contractionary; inflationary; decreasing
C) expansionary; recessionary; increasing
D) contractionary; recessionary; decreasing
E) contractionary; inflationary; increasing

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents