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 is likely to favor an increase in government expenditures to stimulate aggregate demand and increase output (Y₁) during an economic downturn. This approach is based on the belief that government intervention through fiscal policy can help stabilize the economy and address issues such as unemployment. Therefore, option B is the most likely choice for a Keynesian economist.

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