Figure 9.1 shows three aggregate demand curves. A movement from curve AD2 to curve AD1 could be caused by a(n)
A) increase in the price level. B) increase in government spending.
C) increase in the money supply. D) increase in taxes.
D
Economics
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According to John Maynard Keynes, policy makers should respond to a downturn in the business cycle by:
A. Cutting taxes and increasing government spending. B. Cutting taxes and reducing government spending. C. Raising taxes and increasing government spending D. Raising taxes and reducing government spending E. Do nothing because government activism violates Keynes' laissez faire approach.
Economics
An economic system that permits the conduct of business with minimal government intervention
a. free enterprise b. traditional economy c. incentive d. safety net e. socialism
Economics