Author Question: Consider the above figure. If the aggregate demand went from AD2 to AD3, our nation would have gone ... (Read 17 times)

strangeaffliction · **on:** Jun 30, 2018

Consider the above figure. If the aggregate demand went from AD2 to AD3, our nation would have gone from

A) a recessionary gap to an inflationary ga

Question 2

The traditional Keynesian approach to fiscal policy assumes that

A) an equal income distribution ensures a stable economy.
B) consumers spend more when their incomes are higher.
C) cutting taxes is a more effective way to stimulate the economy than is increasing government spending.
D) the effect of unemployment compensation is to destabilize the economy.