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Assume the economy is at full employment and prices are reasonably stable. If the government wants to increase spending for public schools, which of the following policies will have the least inflationary impact?

Tax incentives that encourage saving, investment, and work will shift the AS curve to the right.

According to Keynes, an unbalanced budget is appropriate in all of the following situations except when

Supply-side policies are designed to achieve

Which of the following is generally considered a desirable outcome of government intervention when expanding the economy?

If investment spending decreases and all other levels of spending remain constant, then aggregate

According to Keynes, when the economy falters, the government should do any of the following except

Demand-pull inflation is caused by

Alternating periods of economic growth and contraction in real GDP define

If the level of prices and output are compatible with both buyers’ and sellers’ intentions, then the policy goals are satisfied.