Use the figure below to answer the following question(s) .
Figure 12-3
-Refer to Figure 12-3. If an economy is currently operating at 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 12-3

-Refer to Figure 12-3. If an economy is currently operating at Y₁, which of the following would a Keynesian economist be most likely to favor?

Quizplus · Accepted Answer

A Keynesian economist would likely favor a shift toward a deficit to stimulate the economy and increase aggregate demand when operating below potential output (Y1).

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