If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend
A) a reduction in taxes coupled with a reduction in government expenditures of equal size.
B) an increase in government expenditures coupled with an increase in taxes of equal size.
C) a reduction in taxes, without any offsetting reduction in government expenditures.
D) maintenance of a balanced budget.
Correct Answer:
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Q86: Keynesian analysis stresses that a tax cut
Q87: Use the figure below to answer the
Q88: Figure 11-4 Q89: Use the figure below to answer the Q90: Use the figure below to answer the Q92: When the spending of consumers, businesses, government, Q93: If the economy is in a recession, Q94: If fiscal policy is going to exert Q95: Which of the following is the best Q96: Rather than seeking to balance the budget,
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