Which of the following policies would Keynes's followers support when an increase in business optimism shifts the aggregate demand curve to the right away from long-run equilibrium?
A)decreasing taxes
B)increasing government expenditures
C)increasing the money supply
D)increasing taxes

Question

Quizplus · Accepted Answer

Keynes's followers would support increasing taxes to counteract the increase in aggregate demand and bring the economy back to long-run equilibrium, preventing potential inflation.

Which of the Following Policies Would Keynes's Followers Support When