In the basic Keynesian model,a decrease in transfer payments
A) reduces short-run equilibrium output.
B) increases short-run equilibrium output.
C) reduces potential output.
D) increases potential output.
E) moves short-run equilibrium output to potential output.
Correct Answer:
Verified
Q172: The shift in the PAE line shown
Q173: Between 1939 and 1942,government purchases in Canada
Q174: If planned aggregate expenditure (PAE)in an economy
Q175: The shift in the PAE line shown
Q176: A fiscal policy action to close a
Q178: Government purchases (G)excludes
A) social assistance payments and
Q179: If planned aggregate expenditure equals 5,000 +
Q180: The basic Keynesian model shows that,as far
Q181: Automatic stabilizers are provisions in the law
Q182: Supporters of supply-side economics are of the
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