Author Question: The Keynesian approach to fiscal policy calls for: a. budget deficits during periods of ... (Read 39 times)

mpobi80 · **on:** Jun 30, 2018

The Keynesian approach to fiscal policy calls for:
a. budget deficits during periods of inflationary pressure.
b. budget surpluses during periods of high unemployment.
c. a balanced budget despite the state of the economy.
d. tax cuts during recession.
e. spending increases during inflation.

Question 2

A monopolistic competitive firm in the long run sets price equal to the minimum point on the long-run average cost curve.
a. True
b. False
Indicate whether the statement is true or false