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If the Economy Experiences Stagflation

Question 23

Multiple Choice

If the economy experiences stagflation,


A) government can quickly restore full employment by doing nothing to interfere with the economy's natural self-correcting forces
B) only Keynesian policies can remedy the situation
C) only anti-unemployment policies can remedy the situation
D) Keynesian anti-inflation policies will raise the inflation rate
E) increasing a federal budget surplus will worsen inflation

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