Asked by
TastyKrat YaBoy
on Oct 12, 2024Verified
Which of the following would expand aggregate demand according to Keynesians,while stimulating aggregate supply according to modern supply-siders?
A) Increasing government purchases of resources and goods
B) Increasing transfer payments
C) Open-market purchases of Treasury bonds by the Fed
D) Cutting the discount rate and reserve requirements on demand deposits
E) Cutting personal and corporate marginal tax rates
Aggregate Demand
The total demand for all goods and services in an economy at a given overall price level and in a given time period.
Keynesians
Economists who follow the theories of John Maynard Keynes, emphasizing the need for government intervention to manage economic cycles.
Supply-Siders
Economics theorists who believe that reducing tax rates and deregulation can stimulate economic growth by increasing supply.
- Assess the impact of monetary and fiscal policies on economic results.
- Explore the role of tax measures in shaping economic behavior and enhancing or diminishing government revenue, considering the Laffer Curve.
Verified Answer
HD
Learning Objectives
- Assess the impact of monetary and fiscal policies on economic results.
- Explore the role of tax measures in shaping economic behavior and enhancing or diminishing government revenue, considering the Laffer Curve.