Which of the Following Would Expand Aggregate Demand According to Keynesians,while

question 121

Multiple Choice

Which of the following would expand aggregate demand according to Keynesians,while stimulating aggregate supply according to modern supply-siders?

• A)Increasing government purchases of resources and goods
• B)Increasing transfer payments
• C)Open-market purchases of Treasury bonds by the Fed
• D)Cutting the discount rate and reserve requirements on demand deposits
• E)Cutting personal and corporate marginal tax rates

Comprehend the concept of economies and diseconomies of scale and their impact on the firm's cost structure.

Understand the conditions under which a firm should continue operations or shut down in the short run.

Apply basic cost concepts to calculate costs, including ATC, AVC, and marginal cost given specific data.

Describe the effect of output changes on fixed, variable, and total costs.

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Definitions:

Flexible Spending Accounts

Tax-advantaged accounts that allow employees to save pre-tax dollars for eligible health care and dependent care expenses.

Defined-Benefit Plans

A type of pension plan where an employer promises a specified pension payment upon retirement, which is determined based on the employee’s earnings history, tenure of service, and age.

Workers' Compensation Insurance

Insurance that provides financial benefits and medical care to employees who are injured or become ill as a direct result of their job.

Experience Rating

The number of employees a company has laid off in the past and the cost of providing them with unemployment benefits.