If an Economy Were Experiencing a High Rate of Unemployment

Multiple Choice

If an economy were experiencing a high rate of unemployment as the result of insufficient aggregate demand, a Keynesian economist would favor:

A) a reduction in taxes coupled with a reduction in government expenditures of equal size.
B) an increase in government expenditures coupled with an increase in taxes of equal size.
C) a reduction in taxes, without any offsetting reduction in government expenditures.
D) maintenance of a balanced budget.