« previous next »

Author Question: According to Keynesian economics, what impact would a balanced budget amendment to our constitution ... (Read 78 times)

Davideckstein7

  • Hero Member
  • *****
  • Posts: 555
on: Jun 30, 2018
According to Keynesian economics, what impact would a balanced budget amendment to our constitution have on our national economy?

Question 2

Incomes policies of the federal government include:
 a. presidential jawboning.
  b. wage-price guidelines.
  c. wage-price controls.
  d. All of these.


skipfourms123

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 30, 2018
Answer to Question 1

A balanced budget amendment would destabilize the economy. It would make the business cycle more pronounced exacerbating the problem of unemployment in particular. This is because as the economy contracts, the deficit will rise due to the presence of the automatic stabilizers. Attempts to reduce the deficit, by raising taxes and/or curbing government spending, will reduce total spending (aggregate demand) further, worsening the recession.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The eye muscles are the most active muscles in the whole body. The external muscles that move the eyes are the strongest muscles in the human body for the job they have to do. They are 100 times more powerful than they need to be.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Every 10 seconds, a person in the United States goes to the emergency room complaining of head pain. About 1.2 million visits are for acute migraine attacks.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

A black impact socket. Always use an impact-type socket whenever using an impact wrench to avoid ... A black impact socket. Always use an impact-type socket whenever using an impact wrench to avoid ...
The impact of endocrine disruptor on animal The impact of endocrine disruptor on animal
Will Posting Nutritional Content in Restaurants Have a Positive Impact on the Obesity Epidemic? Will Posting Nutritional Content in Restaurants Have a Positive Impact on the Obesity Epidemic?
The Impact of Cross-Ethnic Friendships on Minority Students’ Well-Being The Impact of Cross-Ethnic Friendships on Minority Students’ Well-Being
economics economics
Economics question Economics question
Video: ACTH/Cortisol (glycogenolysis, protein catabolism, lipolysis and gluconeogenesis)

For a complete list of videos, visit our video library