Which of these statements is a fundamental part of Keyneisan economics?
a. the federal government should have a balanced budget every year to protect economic growth
b. the government can use of deficit spending to increase aggregate demand pull the economy out the reccession
c. the economy will only reach equilibrium and prosperity through the self regulation of the free market
Ans: b. the government can use of deficit spending to increase aggregate demand pull the economy out the reccession
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Define a budget set. Is it the same as a budget constraint?
What will be an ideal response?
One reason scholars argue that government activity should be considered when evaluating the measured income distribution because: a. the lowest-income quintile has benefited from state-subsidized higher education more than have middle-income and higher income quintiles. b. the higher-income quintiles have benefited more than the poor from housing subsidies and Medicaid
c. the middle and higher-income quintiles have benefited more than the poor from state-subsidized airports, airlines, operas, and museums. d. the lowest-income quintile has benefited more than middle-income and upper-income quintiles from state-subsidized airports, airlines, operas, and museums.