Which of the following is the term for the baseline level of unemployment that occurs year-in and year-out and is determined by how well the structures of market and government institutions in the economy lead to a matching of workers and employers in the labor market?

Assume that we want to drive our economy out of recession by generating a $400 billion change in real GDP. The MPC is 0.80 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?

a. $120 billion increase in government spending and $50 billion increase in tax revenue. b. $140 billion increase in government spending and $70 billion increase in tax revenue. c. $160 billion increase in government spending and $120 billion increase in tax revenue. d. $220 billion increase in government spending and $100 billion increase in tax revenue. e. $400 billion increase in government spending and $300 billion increase in tax revenue.

The revolutionary concept put forward by John Maynard Keynes was to stimulate aggregate demand through expansionary fiscal policy

Indicate whether the statement is true or false