Which one of the following economic policies would not be effective in combating a recession? O a. Increase wages to stimulate aggregate demand and depress the rate of unemployment. Ob. Expand the money supply and increase fiscal spending to stimulate aggregate demand. O. Expand the money supply to stimulate aggregate demand and reduce the rate of unemployment. O d. Decrease wages to increase the quantity of labor demanded and to reduce unemployment.

Which one of the following economic policies would not be effective in combating a recession? O a. Increase wages to stimulate aggregate demand and depress the rate of unemployment. Ob. Expand the money supply and increase fiscal spending to stimulate aggregate demand. O. Expand the money supply to stimulate aggregate demand and reduce the rate of unemployment. O d. Decrease wages to increase the quantity of labor demanded and to reduce unemployment.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter33: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 5PA

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