?

AP® Macroeconomics

Free Version

Upgrade subject to access all content

Moderate

Keynesian Range & Fiscal Policy

APMACR-1TVEGT

According to Macroeconomic theory, when Aggregate Demand intersects​ Aggregate Supply in the Keynesian Range, then what is the best Fiscal Action that can be taken?

A

Increased Open Market Operations by the FED.

B

Decreased Government Spending.

C

Higher taxes on the poor.

D

Higher taxes on the rich.

E

Increased Government purchases of goods and services.