Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

39. The economy is in a recessionary gap and a Keynesian economist advocates expansionary fiscal policy. What is a likely reason this economist advocates expansionary

39. The economy is in a recessionary gap and a Keynesian economist advocates expansionary fiscal policy. What is a likely reason this economist advocates expansionary fiscal policy? A. The economist believes the economy is stuck in a recessionary gap and there will be no crowding out. B. The economist believes that wages are too flexible and that crowding out will be incomplete. C. The economist believes the economy is stuck in a recessionary gap and crowding out will be complete. D. The economist believes the AD curve is downward-sloping, the SRAS curve is upward-sloping, and prices are flexible

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics

Authors: Thomas A. Pugel

15th edition

73523178, 978-0077769529, 007776952X, 978-0073523170

More Books

Students also viewed these Economics questions