Which of the following is likely to be true when the economy is ...

[DelorasTo]

Which of the following is likely to be true when the economy is in a boom?
 
  A) The inflation rate is negative.
  B) The size of government expenditure multiplier is small.
  C) The size of government expenditure multiplier is large.
  D) The unemployment rate is high.

Question 2

John Maynard Keynes argued that the fundamental problem which led to the world depression was
 
  A) insufficient demand for goods and services. B) a shortage of goods and services.
  C) negative net exports on goods and services. D) a decreasing supply of goods and services.

[Sophiapenny]

Answer to Question 1

B

Answer to Question 2

A