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Economics(经济学)-Fiscal Policy-财政政策(习题7)

答案如下

When an economy is operating below its potential capacity, the Keynesian prescription for stimulating aggregate demand is to:
A) increase the size of the government's budget deficit.
B) achieve a balanced budget.
C) increase the size of the government's surplus.
D) allow automatic stabilizers to stimulate demand.


Your answer: A was correct!
Keynesians hold that an appropriate dose of expansion fiscal policy (which expands the size of the budget deficit), if properly timed, will stimulate aggregate demand and guide the economy to full employment.

a

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a
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