Assume the economy is in short-run equilibrium at a real GDP below its potential real GDP. According to Keynesian theory, which of the following policies should be followed?
a. The Federal Reserve should increase the money supply
b. The federal government should increase spending.
c. The federal government should do nothing because the economy will self correct to potential real GDP.
d. All of the above.
b
Economics
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If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly, then the total amount of deadweight loss in the industry
A) will increase. B) will decrease. C) will remain unchanged. D) cannot be determined.
Economics
(Consider This) Capital is a:
A. flow, whereas gross investment and depreciation are stocks. B. flow, as are gross investment and depreciation. C. stock, as are gross investment and depreciation. D. stock, whereas gross investment and depreciation are flows.
Economics