If the economy is experiencing less than full-employment, the Keynesian model recommends that the government
a. do nothing to stimulate the economy.
b. undertake expansionary fiscal policy to stimulate aggregate demand.
c. undertake expansionary fiscal policy to stimulate aggregate supply.
d. balance the budget to stimulate aggregate demand.
B
Economics
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It is difficult to determine expected real rates of interest because
A) we never know exactly what inflation rates people anticipate. B) we cannot measure the nominal interest rate. C) the inflation rate is a subjective measurement. D) we cannot measure the inflation rate.
Economics
If it is impossible or very costly to prevent someone from benefiting from a good even if the person does not pay for it, the good is
A) nonrival. B) nonexcludable. C) pure. D) rival.
Economics