If the economy is experiencing unemployment, then the most appropriate government policy would be to:
A. shift the aggregate demand curve by using a tax increase coupled with spending cuts.
B. shift the aggregate supply curve by using a tax increase coupled with more spending.
C. shift the aggregate supply curve by using a tax cut coupled with spending cuts.
D. shift the aggregate demand curve by using a tax cut coupled with more spending.
Answer: D
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What will be an ideal response?
A main cause of the cost disease of personal services is
A. the change from an agrarian society to an industrial society. B. labor-saving innovations in the service industries. C. the unevenness in the growth of productivity in the economy. D. massive increases in industrial production at the expense of consumer goods production.