Question 9 10 pts Suppose the economy is on the classical range of the aggregate supply curve and has a problem with ination. According to Keynesian theory, which of the following is an appropriate discretionary scal policy to use in this situation? O Less government regulation. 0 Increase federal spending. 0 A reduction in the money supply. O Higher taxes. Question 10 10 pts Assume that an economy's spending multiplier is 4. If this economy is in equilibrium at $2,000 billion, then which one of the following actions will bring it to a full-employment equilibrium of $1,500 billion? Q $125 billion spending increase. 0 $500 billion spending increase. 0 $500 billion spending cut. 0 $125 billion spending cut