Keynesian Analysis Suggests That If Planned Spending (Aggregate Demand)were $700

question 47

Multiple Choice

Keynesian analysis suggests that if planned spending (aggregate demand) were $700 billion but GDP was $800 billion,

• A)businesses would accumulate inventories,and output would fall.
• B)output would rise,incomes would rise,and tax revenues would automatically increase.
• C)production would be stimulated,and output would increase,unless the full-capacity output was less than $950 billion.
• D)the Federal Reserve would eventually lower interest rates.

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Definitions:

Businesses

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits.

Morality of Employees

The principles concerning the distinction between right and wrong or good and bad behavior as demonstrated by employees in a workplace setting.

Arthur Tappan

A prominent 19th-century American abolitionist and businessman known for his involvement in anti-slavery movements and the founding of the American Anti-Slavery Society.

American Bible Society

A Christian organization founded in 1816, focused on the distribution of the Bible and biblical resources worldwide to share the message of Christianity.