If the Economy Experiences Stagflation

question 23

Multiple Choice

If the economy experiences stagflation,

• A)government can quickly restore full employment by doing nothing to interfere with the economy's natural self-correcting forces
• B)only Keynesian policies can remedy the situation
• C)only anti-unemployment policies can remedy the situation
• D)Keynesian anti-inflation policies will raise the inflation rate
• E)increasing a federal budget surplus will worsen inflation