Author Question: Which of the following would be an appropriate discretionary fiscal policy to use when the economy ... (Read 36 times)

ap345 · **on:** Jun 30, 2018

Which of the following would be an appropriate discretionary fiscal policy to use when the economy is in a recession?
a. Increased government spending.
b. Higher taxes.
c. A balanced-budget reduction in both spending and taxes.
d. An expansion in the money supply.

Question 2

According to Keynesians, an increase in the money supply will have its least impact on GDP when the aggregate demand curve intersects:
a. the horizontal portion of the aggregate supply curve.
b. the vertical portion of the aggregate supply curve.
c. the upward sloping portion of the aggregate supply curve.
d. either the horizontal or upward sloping portion of the aggregate supply curve.
e. either the horizontal or upward sloping portion of the aggregate supply curve.