If the Economy Is Experiencing Less Than Full-Employment, the Keynesian

question 98

Multiple Choice

If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:

• A) do nothing to stimulate the economy.
• B) undertake fiscal policy to stimulate aggregate demand.
• C) undertake fiscal policy to stimulate aggregate supply.
• D) balance the budget to stimulate aggregate demand.

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Definitions:

Los Angeles

A major city in the state of California, USA, known for its significant cultural, economic, and entertainment influence.

American West

A region of the United States generally considered to encompass the westernmost states, associated with frontier history, expansion, and cultural distinctiveness.

General Survey

A comprehensive examination or assessment of a wide range of subjects or areas within a specific field or context.

Federal Government

The national government of a federated state, which is responsible for the areas of governance assigned to it by the constitution.