Given AD1 and AS1 in Figure 8.3, the classical approach to achieving full employment at an output of $300 billion would be to
A. Increase the growth of the money supply to shift AD1 to AD2.
B. Do nothing and wait for "natural" market forces to achieve full employment.
C. Increase taxes and increase government spending to shift AD1 to AD2.
D. Use all available supply-side options.
Answer: B
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a. True b. False Indicate whether the statement is true or false