As a response to the 2008 recession, the U.S.government employed expansionary policy to push the economy out to its level of potential output.
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Q3: If the economy is not in a
Q4: According to Keynes, market economies:
A)never experience significant
Q7: In the AS/AD model, as the price
Q9: If productivity and wages both rise by
Q10: The short-run aggregate supply curve is upward
Q11: Potential income is that level of income
Q13: Keynes believed the economy was:
A)fluctuating around potential
Q15: Starting from a long-run equilibrium, an increase
Q16: According to the Keynesian model,
A)wages are flexible
Q17: The repercussions that the money wealth and
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