Demand-pull inflation is associated with: a. decreasing total ...

[xroflmao]

Demand-pull inflation is associated with:
 a. decreasing total spending (demand).
  b. increasing total spending (demand).
  c. decreasing costs of production (supply).
  d. increasing costs of production (supply).

Question 2

Describe appropriate discretionary fiscal policy according to Keynesian economics to smooth out the business cycle.

[cici]

Answer to Question 1

b

Answer to Question 2

The government should increase its spending and/or reduce taxes (run a deficit), or increase government spending and taxes by the same amount to combat a recession. The government should do just the opposite to combat inflation during an economic expansion.

[xroflmao]

Gracias!

[kusterl]

Thanks for the timely response, appreciate it