Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

According to Keynes, if private sector demand is insufficient to maintain full employment, the government should: a. Shock the economy with an increase in aggregate

According to Keynes, if private sector demand is insufficient to maintain full employment, the government should:

a. Shock the economy with an increase in aggregate demand.

b. Reduce aggregate supply to reduce inflation.

c. Take steps to increase aggregate supply in an economy.

d. Print money to promote consumer spending.

e. Make the economy's natural transition to a lower level of employment as easy as possible.

Step by Step Solution

3.35 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

Keynes proposed that the role of government spending should be complementar... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations of Macroeconomics

Authors: Robin Bade, Michael Parkin

8th edition

134492005, 978-0134492001

More Books

Students also viewed these Economics questions