Author Question: The business cycle is the periodic but recurrent fluctuations in real GDP. a. True b. False ... (Read 68 times)

futuristic · **on:** Jun 30, 2018

The business cycle is the periodic but recurrent fluctuations in real GDP.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Suppose inflation is a threat because the current aggregate demand curve will increase by 600 billion at any price level. If the marginal propensity to consume is 0.75, federal policymakers can follow Keynesian economics and restrain inflation by:
a. decreasing tax revenues by 600 billion.
b. decreasing government spending by 200 billion.
c. increasing tax revenues by 200 billion.
d. increasing government purchases by 150 billion.