When an Economy Is Operating Below Its Potential Capacity, Keynesian

question 104

Multiple Choice

When an economy is operating below its potential capacity, Keynesian economists argue that

• A) taxes should be raised if the government is currently running a budget deficit.
• B) taxes should be lowered but only if the government is running a budget surplus.
• C) the government should cut taxes and/or increase expenditures in order to stimulate aggregate demand.
• D) both a and b are correct.
• E) all of the above are correct.

Evaluate the factors that led to Lincoln’s re-election in 1864 and the role of military successes in that election.

Understand the concept of correlation and its application in predicting relationships between variables.

Distinguish between different research methods (e.g., experimental, correlational, surveys) and their purposes.

Recognize the importance of sample representativeness in research findings' generalization.