According to Keynes, if private sector demand is insufficient to maintain full employment, the government should:
a. make the economy's natural transition to a lower level of employment as easy as possible.
b. shock the economy with an increase in aggregate demand

c. reduce aggregate supply to reduce inflation.
d. print money to promote consumer spending.
e. take steps to increase aggregate supply in an economy.

b

Economics

You might also like to view...

Explain the productivity curve and how the components interact

What will be an ideal response?

Economics

M1 is actually a smaller amount than M2

a. True b. False Indicate whether the statement is true or false

Economics