Multiple Choice
Assume the economy is experiencing an inflationary gap, Keynesian economists would believe that:
A) flexible wages will restore full employment.
B) the federal government should decrease spending to shift the aggregate demand curve leftward.
C) the Federal Reserve should lower the interest rate.
D) the federal government should increase spending to shift the aggregate demand curve rightward.
Correct Answer:

Verified
Correct Answer:
Verified
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