Both images are of the same question I could only put 1 dropbox down at a time. 3. The Keynesian view of fiscal policyWhich of the following could cause an increase in the budget surplus? Check all that apply.An economic expansionRestrictive fiscal policyAn economic recessionExpansionary fiscal policyTrue or False: Keynesian economists argue that the government can fight inflation by implementing restrictive fiscal policy.expansionary policyFalsecountercyclical policyTruerestrictive policyKeynesian theory stresses the importance ofto offset fluctuations in 3. The Keynesian view of fiscal policyWhich of the following could cause an increase in the budget surplus? Check all that apply.An economic expansionRestrictive fiscal policyAn economic recessionExpansionary fiscal policyTrue or False: Keynesian economists argue that the government can fight inflation by implementing restrictive fiscal policy.short run aggregate supplyFalseaggregate demandTruelong run aggregate supplyKeynesian theory stresses the importance ofto offset fluctuations in

Keynesian economics views fiscal policy, which refers to government spending and taxation, as a key…

3. The Keynesian view of fiscal policy Which of the following could cause an increase in the budget surplus? Check all that apply. An economic expansion Restrictive fiscal policy An economic recession Expansionary fiscal policy True or False: Keynesian economists argue that the government can fight inflation by implementing restrictive fiscal policy. expansionary policy False countercyclical policy True

3. The Keynesian view of fiscal policy Which of the following could cause an increase in the budget surplus? Check all that apply. An economic expansion Restrictive fiscal policy An economic recession Expansionary fiscal policy True or False: Keynesian economists argue that the government can fight inflation by implementing restrictive fiscal policy. expansionary policy False countercyclical policy True

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Fiscal Policy

Section: Chapter Questions

Problem 3.11P

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Similar questions

Under what general macroeconomic circumstances might a government use expansionary fiscal policy? When might it use contractionary fiscal policy?
Explain how automatic stabilizers work, both on the taxation side and on the spending side, first in a situation where the economy is producing less than potential GDP and then in a situation where the economy Is producing more than potential GDP.
What would happen if expansionary fiscal policy was implemented in a recession but, due to lag, did not actually take effect until after the economy was back to potential GDP?
What is the main advantage of automatic stabilizers over discretionary fiscal policy?
Why is spending by the U.S. government on scientific research at NASA fiscal policy while spending by the University of Illinois is not fiscal policy? Why is a cut in the payroll tax fiscal policy whereas a cut in a state income tax is not fiscal policy?
What are some of the ways fiscal policy might encourage economic growth?
Explain the difference between the government purchases multiplier and the net tax multiplier. If the MPC falls, what happens to the tax multiplier?
What is the main reason for employing expansionary fiscal policy during a recession?
Assume there is no discretionary increase in government spending. Explain how an improving economy will affect the budget balance and, in turn, investment and the trade balance.
In a recession, does the actual budget surplus or deficit fall above or below the standardized employment budget?
How would a balanced budget amendment change the effect of automatic stabilizer programs?