-Refer to Exhibit 11-1.The economy is currently at point 1.In this situation,Keynesian economists would most likely propose
A) an increase in government purchases.
B) a decrease in government purchases.
C) an increase in taxes.
D) a and c
E) b and c

Question

-Refer to Exhibit 11-1.The economy is currently at point 1.In this situation,Keynesian economists would most likely propose
A) an increase in government purchases. 
B) a decrease in government purchases. 
C) an increase in taxes. 
D) a and c 
E) b and c

Quizplus · Accepted Answer

Keynesian economists typically advocate for an increase in government spending to stimulate demand and move the economy out of a recession or a low-growth period, which is implied by the economy being at point 1 in the exhibit.