Question
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.
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
8th edition
134492005, 978-0134492001
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