While there are intense debates among macroeconomists regarding the effectiveness of expansionary fiscal policy during a severe recession, both the Keynesian and non-Keynesian economists agree that fiscal policy is subject to some limitations as a stabilization tool.
Which of the following issues do most macroeconomists widely agree upon?
a. An increase in government spending will not stimulate aggregate output during a recession.
b. Government should increase its spending during a severe recession because the crowding-out will be minimal and will not negatively affect long-term growth.
c. Discretionary fiscal policy is less effective than is implied by the early Keynesian view.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “While there are intense debates among macroeconomists regarding the effectiveness of expansionary fiscal policy during a severe recession, ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The buffer in a bad-news message is a a. statement completely unrelated to the bad news so that receivers will not know that bad news is coming. b. hint that good news will follow. c. denial of the requested action. d.
Answers (1)
The following e-mail message suffers from many writing faults, including poor tone and ineffective persuasive strategy. It originated with a manager and is addressed to her boss. List at least five writing weaknesses.
Answers (1)
If a competitive industry is currently losing money, what can be expected to happen to the number of sellers, the price of the product, the volume of output and losses in this industry over time?
Answers (1)
Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced 3,700 Variable costs per unit: Direct materials $ 132 Direct labor $ 93 Variable manufacturing overhead
Answers (1)
An aging of a company's accounts receivable indicates that the estimate of uncollectible receivables totals $7,900.
Answers (1)
New Questions in Business
Pebbles has a gross pay of $1,075.00 every pay period. After all deductions are taken out her net pay is $825.00. What percentage of her gross pay does she take home as her net pay?
Answers (1)
1. How is real GDP different from GDP? A. Real GDP takes inflation into account. B. GDP takes inflation into account. C. Real GDP uses utility rather than dollars as a unit of measurement. D. GDP only uses dollars as a measurement.
Answers (1)
Sparks Corporation has a cash balance of $10,500 on April 1. The company must maintain a minimum cash balance of $8,500. During April, expected cash receipts are $53,000. Cash disbursements during the month are expected to total $59,500.
Answers (1)
Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following dа ta: The yield on the company's outstanding bonds is 7.75%, its tax rate is 40%, the next expected dividend is $0.
Answers (1)
What is accounting mean?
Answers (1)