According to Keynes, if private sector demand is insufficient to maintain full employment, the government should:
a. make the economy's natural transition to a lower level of employment as easy as possible.
b. shock the economy with an increase in aggregate demand
c. reduce aggregate supply to reduce inflation.
d. print money to promote consumer spending.
e. take steps to increase aggregate supply in an economy.
b
You might also like to view...
When the price ceiling on eggs is lifted, there is a shortage of eggs in the market
a. True b. False Indicate whether the statement is true or false
Average revenue is another way of describing
a. price b. output c. total revenue d. profit e. marginal cost
Supply-side economic policies are best viewed as
a. a short-run countercyclical tool. b. a long-run strategy to promote economic growth. c. a strategy for the control of long-run inflation. d. a stabilization tool to smooth the ups and downs of the business cycle.
The approach by which a labor union tries to negotiate an industry-wide wage for different classes of labor is called:
a. inclusive or industrial. b. mediation. c. arbitration. d. strike.