According to a Classical, Sound Finance Perspective on Macroeconomics, If

Multiple Choice

According to a Classical, sound finance perspective on macroeconomics, if an economy is on an inflationary path, the government should run:

A) a budget deficit and increase spending, which will reduce output.
B) a budget surplus and decrease spending, which will reduce output.
C) neither a surplus nor a deficit since changes in deficit spending do not affect output.
D) neither a surplus nor a deficit since changes in spending affect output.