When output and employment slowed in early 2008, the Bush administration and the Democratic Congress passed legislation sending households a check for $600 for each adult (and $300 per child). These checks were financed by borrowing. Evaluate the following statement. True or False: A Keynesian would not favor this action because despite the fact that the U.S. economy seemed to operate below its potential capacity, the government should avoid financing its spending by borrowing at any cost. True False
When output and employment slowed in early 2008, the Bush administration and the Democratic Congress passed legislation sending households a check for $600 for each adult (and $300 per child). These checks were financed by borrowing. Evaluate the following statement. True or False: A Keynesian would not favor this action because despite the fact that the U.S. economy seemed to operate below its potential capacity, the government should avoid financing its spending by borrowing at any cost. True False
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter24: The Aggregate Demand/aggregate Supply Model
Section: Chapter Questions
Problem 42CTQ: On a microeconomic demand curve, a decrease in price causes an increase in quantity demanded because...
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8. Critical analysis Q10
When output and employment slowed in early 2008, the Bush administration and the Democratic Congress passed legislation sending households a check for $600 for each adult (and $300 per child). These checks were financed by borrowing.
Evaluate the following statement.
True or False: A Keynesian would not favor this action because despite the fact that the U.S. economy seemed to operate below its potential capacity, the government should avoid financing its spending by borrowing at any cost.
True
False
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