When an Economy Is Operating Below Its Potential Capacity, Keynesian

question 205

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 spending in order to stimulate aggregate demand.
• D) all of the above.

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Definitions:

Sexual Orientation

An enduring pattern of emotional, romantic, and/or sexual attractions to men, women, or both sexes. Sexual orientation also refers to a person's sense of identity based on those attractions, related behaviors, and membership in a community of others who share those attractions.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attraction to men, women, both genders, neither gender, or another gender.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, or both sexes, seen as part of a continuum or a distinct category.

Leptin

A hormone produced by adipose (fat) cells that regulates energy balance by inhibiting hunger, which in turn diminishes fat storage in adipocytes.