Using the concept in Keynesian economics, which one of the following may not be an effective fiscalpolicy when there is inflation?a) increasing aggregate demandb) increasing corporate taxes.c) increasing personal taxes.d) decreasing government purchases.

Fiscal policy refers to changes in taxes and government purchases to affect the aggregate demand…

Using the concept in Keynesian economics, which one of the following may not be an effective fiscal policy when there is inflation? increasing aggregate demand increasing corporate taxes. increasing personal taxes. decreasing government purchases.

Using the concept in Keynesian economics, which one of the following may not be an effective fiscal policy when there is inflation? increasing aggregate demand increasing corporate taxes. increasing personal taxes. decreasing government purchases.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter21: Fiscal Policy

Section: Chapter Questions

Problem 16SQ

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Question

Using the concept in Keynesian economics, which one of the following may not be an effective fiscal
policy when there is inflation?
a) increasing aggregate demand
b) increasing corporate taxes.
c) increasing personal taxes.
d) decreasing government purchases.

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