Keynesians argued that the reason why deficit spending did not "work" (eliminate unemployment) in the 1930s but did work in world war ii was that wartime deficits were
a. accompanied by an expansionary monetary policy
b. accompanied by wage and price controls
c. accompanied by the drafting of low-skilled workers into the armed forces
d. much bigger e. this is so obvious i didn’t need to go to class to find this out
Answers: 2
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The country of bienmundo does not trade with any other country. its gdp is $30 billion. its government purchases $5 billion worth of goods and services each year and collects $6 billion in taxes. private saving in bienmundo amounts to $5 billion. what are consumption and investment in bienmundo? a. $17 billion and $8 billion, respectively. b. $19 billion and $6 billion, respectively. c. $19 billion and $8 billion, respectively. d. $17 billion and $6 billion, respectively.
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Keynesians argued that the reason why deficit spending did not "work" (eliminate unemployment) in th...
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