the diagrams best portrays the effects of a decrease in the availability of key natural resources?

If the economy is at full employment, then an increase in government spending:

A. would simply crowd out private spending. B. would have too large an impact on real growth. C. would cause deflation, which would increase unemployment. D. is the right fiscal policy response.

In the Keynesian model, suppose the Fed sets a target for the real interest rate

If the IS curve shifts down and to the left, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, what should the Fed do? Use the LR curve to formulate your answer.