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According to Keynes, What Should the Government Do If Private-Sector

Question 40

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According to Keynes, what should the government do if private-sector demand is insufficient to maintain full employment?  


A)  It should act to make the economy's natural transition to the lower level of employment as easy as possible. 
B)  It should shock the economy with an increase in aggregate demand. 
C)  It should reduce aggregate supply to reduce inflation. 
D)  It should print money to promote consumer spending.

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