To fight recession, the government may
A)decrease aggregate demand, which will also lead to lower unemployment rates.
B)increase aggregate demand, which will also lead to higher price levels.
C)increase aggregate demand, which will also lead to lower price levels.
D)decrease aggregate demand, which will also lead to higher unemployment rates.

Question

Quizplus · Accepted Answer

To combat a recession, the government might aim to increase aggregate demand through fiscal or monetary policies. This can stimulate economic activity, but it may also lead to higher price levels due to increased demand for goods and services.

To Fight Recession, the Government May