Figure 11-4 -According to Keynesian Analysis, Which of the Following Policy Combinations

question 11

Multiple Choice

Figure 11-4
-According to Keynesian analysis, which of the following policy combinations would most likely to move the economy illustrated in Figure 11-4 to full employment?

• A)increase both taxes and government transfer payments
• B)reduction in government purchases and increase in taxes
• C)increase in government purchases and reduction in taxes
• D)increase in taxes to reduce the government deficit

---

Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing better budgeting accuracy.

Occupancy Expenses

Costs associated with occupying a space, including rent, utilities, and other maintenance fees.

Client-Visits

The act of meeting with clients or potential clients in person to discuss business, build relationships, or offer support.

Flexible Budget

A flexible budget that varies with activity levels or volume, enabling more precise budgeting and analysis of discrepancies.