Use the Figure Below to Answer the Following Question(s)

question 99

Multiple Choice

Use the figure below to answer the following question(s) . Figure 11-2
Refer to Figure 11-2. Which of the following will a Keynesian most likely favor if the economy is operating at point a?

• A) a tax cut
• B) an increase in government expenditures
• C) restrictive fiscal policy
• D) an increase in the budget deficit

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