Tax cuts in the classical range of the AS will stimulate output and unemployment -false 5- Increasing welfare payments by borrowing money to do so will increase AD- true 6- if the mpc increases, the multiplier decreases- false
posting this again, can you tell me which questions i've gotten wrong? i dont need any explanations for the ones i've gotten right. i just dont know which ones i've missed- if you could explain those that'd be fantastic. thanks
4- Tax cuts in the classical range of the AS will stimulate output and
5- Increasing welfare payments by borrowing money to do so will increase AD- true
6- if the mpc increases, the multiplier decreases- false
7- if the mps increases the multiplier decreases -true
8- part of the cost of growing government budget deficits is and “
9- tax cuts in the classical range of the AS curve will stimulate output and employment. -true
10- if the AS curve were flat/horizontal an increase in AD would not be inflationary- true
11- an increase in AD might be cause by improving technology in manufacturing processes. -false? That would effect AS.
12- Inflation is thought to not be a problem in the Keynesian range of the AS curve- true
13- An increase in AD might be the result of higher taxes on households. -false
14- Crowding out, when it occurs, involves increasing interest rates. -false
15- In the Keynesian range of the AS curve, increases in taxes will raise unemployment- true
16- If the MPC is .95 and taxes are increased by $20, AD will increase by $380- true
17- If Y* is more than Yfe, the economy is in the classical range of the AS curve- true
18- tax cuts directed at higher income individuals will do more to stimulate the economy than those directed to lower income individuals, in the keynesian model.-true
19- growing federal budget deficits are a problem cased by kenynesian economics- false
20- Keynes advocated using government deficits in times of depression -true
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