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(Solved by Expert Tutors) According to Keynesian theory, how will increasing government spending<


when unemployment is 10% have a different effect from a similar increase when unemployment is 5%?
a) At 10%, it is more likely to increase prices than real output.
b) At 5%, it is more likely to increase real output than prices.
c) At 10% it is more likely that it will require a sacrifice of private goods.
d) At 5% it is more likely that it will require a sacrifice of private goods.

 


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Apr 19, 2020

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