Suppose that the economy is in the midst of a recession. Which of the following policies would most likely end the recession and stimulate output growth?
A) A congressional proposal to incur a federal surplus to be used for the retirement of public debt.
B) Reductions in agricultural subsidies and veterans' benefits.
C) Postponement of a highway construction program.
D) Reductions in federal tax rates on personal and corporate income.
Correct Answer:
Verified
Q1: Assume the economy is at full employment
Q3: If the MPC in an economy is
Q4: If the MPC in an economy is
Q5: In a certain year the aggregate amount
Q6: In a certain year, the aggregate amount
Q7: Discretionary fiscal policy will likely cause budget
A)
Q8: If the MPS in an economy is
Q9: An appropriate fiscal policy for a severe
Q10: The group of three economists who provide
Q11: In an aggregate demand-aggregate supply diagram, equal
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents