If the unemployment rate is 7.5% and the inflation is 0.5%, what would a Keynesian economist advocate that the government should do?   Select one:   a.   Raise corporate taxes   b.   Increase interest rates   c.   Do nothing. The economy will fix itself   d.   Increase government spending   e.   Reduce government regulations & subsidize production

Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Six Debates Over Macroeconomic Policy
Section23.2: Should The Government Fight Recessions With Spending Hikes Rather Than Tax Cuts?
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If the unemployment rate is 7.5% and the inflation is 0.5%, what would a Keynesian economist advocate that the government should do?

 

Select one:

 

a.

 

Raise corporate taxes

 

b.

 

Increase interest rates

 

c.

 

Do nothing. The economy will fix itself

 

d.

 

Increase government spending

 

e.

 

Reduce government regulations & subsidize production

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