Use the figure below to answer the following question(s) .
Figure 12-1
-Refer to Figure 12-1. If the output of the economy is Y₁, which of the following would a Keynesian economist be most likely to favor?

Question

Use the figure below to answer the following question(s) .
Figure 12-1

-Refer to Figure 12-1. If the output of the economy is Y₁, which of the following would a Keynesian economist be most likely to favor?

Quizplus · Accepted Answer

A Keynesian economist would likely favor an increase in government expenditures to boost aggregate demand and move the economy towards full employment when output is below potential, as indicated by Y1.

Use the Figure Below to Answer the Following Question(s)