Keynesians believe that to help ensure full employment production, we should use

A) both counter-cyclical monetary and fiscal policy.
B) a money supply rule and counter-cyclical fiscal policy.
C) counter-cyclical fiscal policy only.
D) counter-cyclical monetary policy only.


A

Economics

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A) transfers wealth from lenders to borrowers. B) transfers wealth from borrowers to lenders. C) increases menu costs. D) damages the role of prices as signals in the economy.

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At full-employment GDP,

A) the long-run aggregate demand curve is horizontal. B) the long-run aggregate demand curve is vertical. C) the long-run aggregate supply curve is horizontal. D) the long-run aggregate supply curve is vertical.

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Economics