To increase aggregate demand when the economy is in a severe recession, the government should implement fiscal policy that will: reduce the overall size of the government balance the government's budget lower the government's debt increase the government budget deficit Ecological economics emphasizes that: the economy is supported by unpaid care labor, which is mostly done by women the ecosystem efficiently transforms economic waste into valuable economic inputs we must decrease population to decrease the environmental impact of the economy increasing economic output imposes significant costs by using up natural resources Question 1 9 pts Because of the paradox of thrift: The reduction in government spending during the Great Depression led to more job creation and a reduction in unemployment. The increase in aggregate saving during the Great Depression led to a decrease in aggregate income. The banking crisis during the Great Depression led to an increase in consumption smoothing. The reduction in government spending during the Great Depression led to a more efficient form of capitalism