Which Economists Believe in Using Government Spending and Taxes to Move

question 50

Multiple Choice

Which economists believe in using government spending and taxes to move the economy from AD₁ to AD₂ in Figure 18.3?

• A)Supply-siders.
• B)Monetarists.
• C)Keynesians.
• D)Classical economists.

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Definitions:

Electrical Generator

A device that converts mechanical energy into electrical energy, typically through rotating a coil within a magnetic field.

Externality

A cost or benefit arising from an economic activity that affects third parties who did not choose to incur that cost or benefit.

Incentive

Something that motivates or encourages an individual or entity to act in a certain way.

Costs And Benefits

This is an analysis approach that compares the potential outcomes and implications, in terms of costs and benefits, of an action or decision.