In the First Half of 2008, Food and Energy Costs

Multiple Choice

In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A macroeconomist would support the use of _ .

A) Keynesian; fiscal or monetary policy to stimulate aggregate demand
B) classical; monetary policy to stimulate aggregate demand
C) Keynesian; technology to push the economy back to full employment
D) classical; taxes to push the economy back to full employment