According to Traditional Keynesian Analysis,if the Economy Is in a Recession,the

question 3

Multiple Choice

According to traditional Keynesian analysis,if the economy is in a recession,the government can move it back towards full employment by

• A)cutting taxes and increasing expenditures.The effect of the tax cut is larger.
• B)cutting taxes and increasing expenditures.The effect of the tax cut is smaller.
• C)raising taxes and decreasing expenditures.The effect of the tax increase is larger.
• D)raising taxes and decreasing expenditures.The effect of the tax increase is smaller.