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If the Economy Is Experiencing Less Than Full-Employment, the Keynesian

Question 73

Multiple Choice

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.

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