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    Exam 16: Supply-Side Policy: Short-Run Options
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    In the Simple Keynesian Model
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In the Simple Keynesian Model

Question 129

Question 129

Multiple Choice

In the simple Keynesian model,


A) Inflation becomes a problem only if demand increases at full employment.
B) Inflation is a problem whenever demand increases.
C) Inflation is never a problem.
D) Inflation is a problem whenever demand decreases.

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