Suppose the Economy Is at a Position Below Its Institutional

question 6

Multiple Choice

Suppose the economy is at a position below its institutional production possibilities frontier.In response to this situation,Keynesian economists would propose that government __________ taxes,which will cause the aggregate demand curve to shift to the __________ and Real GDP will __________.

• A) increase; right; increase
• B) increase; left; decrease
• C) decrease; left; decrease
• D) decrease; right; decrease
• E) decrease; right; increase