According to Keynes, What Should the Government Do If Private-Sector

question 40

Multiple Choice

According to Keynes, what should the government do if private-sector demand is insufficient to maintain full employment?  

• A) It should act to make the economy's natural transition to the lower level of employment as easy as possible. 
• B) It should shock the economy with an increase in aggregate demand. 
• C) It should reduce aggregate supply to reduce inflation. 
• D) It should print money to promote consumer spending.

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