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:

Dispute Resolution

A process or methods used to resolve conflicts or disputes between parties, including negotiation, mediation, arbitration, or legal proceedings.

Ownership

The legal right or title to an asset or property, granting the owner control and decision-making powers over it.

Arbitration

A form of alternative dispute resolution where a neutral third party hears evidence from the disputants and makes a decision that can be binding.

Traditional Litigation

The process of resolving disputes by bringing them to court, as opposed to alternative dispute resolution methods.