Which of the following schools of thought are policy interventionists favoring activist aggregate demand management to stabilize output and employment?
a. Keynesians
b. Monetarism
c. The new classical economics
d. The classical economics
e. None of the above
Question 2
Assume that the total deficit is 100 billion and the economy is above potential output.
Now the level of economic activity falls back to its potential level output, leading to an decrease in tax revenues increase by 50 billion an increase in transfer payments fell by 10 billion. Then, what is the structural deficit? a. 100 billion
b. 110 billion
c. 150 billion
d. 160 billion
e. can't tell based on information given.
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