The Keynesian Analysis of Fiscal Policy Implies That

question 69

Multiple Choice

The Keynesian analysis of fiscal policy implies that

• A) fiscal policy should generally be expansionary except during periods of economic recession.
• B) fiscal policy should generally be restrictive except during inflationary booms.
• C) the federal budget should be balanced annually except during war.
• D) the federal budget should be used to maintain aggregate demand at a level consistent with full employment.

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