Multiple Choice
The fiscal policy response to the recession of 2008-2009 was
A) a substantial increase in the budget deficit just as Keynesian analysis would recommend.
B) a balanced budget, just as Keynesian analysis would recommend.
C) a substantial increase in the budget deficit, which was highly inconsistent with Keynesian analysis.
D) a shift of the federal budget toward a large surplus, which reflected the views of the critics of Keynesian economics.
Correct Answer:
Verified
Correct Answer:
Verified
Q42: The crowding-out effect refers to the tendency
Q43: Ricardian Equivalence maintains that an increase in
Q44: According to the critics of Keynesian economics,
Q45: Which of the following most clearly indicates
Q46: Which of the following is a consensus
Q48: The supply-side effects of a reduction in
Q49: A substantial decrease in marginal tax rates
Q50: If the government ran a major budget
Q51: Politicians often instruct households to spend in
Q52: When the government levies taxes to subsidize