Multiple Choice
Budget projections for 2014-2020 indicate both higher levels of government spending and large budget deficits. Non-Keynesian economists argue that this will lead to
A) lower taxes, which will reduce aggregate supply and retard long-term growth.
B) growth rates above the historic average for the decade.
C) an increase in aggregate demand and real output.
D) higher interest rates, higher taxes, and sluggish future growth.
Correct Answer:
Verified
Correct Answer:
Verified
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