Solved

In 1965 During the Johnson Administration, the U

Question 76

Multiple Choice

In 1965 during the Johnson administration, the U.S.economy was headed toward an inflationary gap.Which of the following policies would an economist recommend?


A) an open market purchase
B) a tax increase
C) a tax cut
D) increase defense spending

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q7: When consumers and producers operate under rational

Q17: The Smoot-Hawley Tariff Act of 1930 contributed

Q24: According to Keynesian theory,<br>A) sticky prices and

Q37: While Keynes argued that the Great Depression

Q41: During the 1970s when the U.S. experienced

Q71: In the late 1970s, oil prices rose

Q79: In 1979, the CPI rose 13.5%, the

Q81: Figure 17-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Figure 17-1

Q91: Keynes's theory of macroeconomics rejects classical macroeconomists'

Q99: New classical economics contends that policy activism