Business, 15.04.2020 23:42 camila9022

Let's say that the economy currently has an unemployment rate of 9.4% and that economists have observed that the budget deficit during the past several months has increased significantly. Based on this, which of the following would a supporter of the Classical economic theory recommend?

a. Aggregate supply must increase. The government must do this by lowering taxes and encouraging saving.
b. Aggregate demand must decrease. The government must do this by lowering taxes
c. Aggregate demand must increase. The government must do this by increasing spending
d. Aggregate supply must decrease. The government must do this by raising taxes and discouraging saving.
e. Both aggregate demand and aggregate supply must increase. The government must do this by increasing government spending and limiting the money supply

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:10, octaviangh14

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?

Answers: 1

continue

Business, 22.06.2019 04:30, skyvargasov9cad

Peyton taylor drew a map with scale 1 cm to 10 miles. on his map, the distance between silver city and golden canyon is 3.75 cm. what is the actual distance between silver city and golden canyon?

Answers: 3

continue

Business, 22.06.2019 10:30, tigistamare03

6carla would like to buy a dress, a dresser for her bedroom, and a home theater system. she has one month's worth of living expenses in her emergency fund. carla decides to save for the home theater system. did carla make the right decision? why or why not? a. yes; her emergency fund is full and the other items will probably be less expensive. b. yes; she could save more for her emergency fund, but the home theater will be harder to save for. c. no; she should save more for her emergency fund because she has saved less than the recommended amount. d. no; she should have bought the dress and dresser first because she could afford them right away. reset next

Answers: 2

continue

Business, 22.06.2019 12:10, latdoz0952

Which of the following is not part of the mission statement of the department of homeland security? lead the unified national effort to secure america protect against and respond to threats and hazards to the nation ensure safe and secure borders coordinate intelligence operations against terrorists in other countries

Answers: 1

continue

You know the right answer?

Let's say that the economy currently has an unemployment rate of 9.4% and that economists have obser...