If an Economy Were Experiencing a High Rate of Unemployment

question 23

Multiple Choice

If an economy were experiencing a high rate of unemployment as the result of weak aggregate demand, a Keynesian economist would be most likely to recommend

• A) a reduction in taxes coupled with a reduction in government expenditures of equal size.
• B) an increase in government expenditures coupled with an increase in taxes of equal size.
• C) a reduction in taxes, without any offsetting reduction in government expenditures.
• D) maintenance of a balanced budget.

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Definitions:

Buttocks

The two rounded portions of the anatomy, located on the posterior of the pelvic region in humans and many other primates.

Deltoid

The deltoid is a large, triangular muscle responsible for lifting the arm and giving the shoulder its range of motion.

Bursa

A sac or pouch in connective tissue chiefly around joints.

Tendon

A band of fibrous connective tissue that connects muscle to bone, facilitating movement by transmitting forces.