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:
Verified
Q14: A federal budget surplus
A) occurs when government
Q15: Which of the following is an example
Q18: Reductions in private spending as a result
Q22: _ flows from government to households.
A) A
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