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
Correct Answer:

Verified
Correct Answer:
Verified
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