Keynesian Analysis Suggests That a Planned Budget Surplus

question 55

Multiple Choice

Keynesian analysis suggests that a planned budget surplus

• A) will affect aggregate demand only if the money supply decreases by the size of the surplus.
• B) will stimulate both consumption and income.
• C) will stimulate output and employment.
• D) is proper during periods of inflation but may increase unemployment if timed improperly.

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Definitions:

Adaptive Radiation

An evolutionary process in which organisms diversify rapidly into a multitude of new forms, particularly when a change in the environment makes new resources available or opens new niches.

Temporal Isolation

A mechanism of reproductive isolation where two species mate or flower at different times, preventing crossbreeding.

Reproductive Isolation

A set of mechanisms that prevent different species from interbreeding.

Ecological Isolation

A form of reproductive isolation where different species live in the same area but occupy different habitats, preventing them from mating and producing offspring.