Which of the following is likely to be true when the economy is in a boom?
A) The inflation rate is negative.
B) The size of government expenditure multiplier is small.
C) The size of government expenditure multiplier is large.
D) The unemployment rate is high.
Question 2
John Maynard Keynes argued that the fundamental problem which led to the world depression was
A) insufficient demand for goods and services. B) a shortage of goods and services.
C) negative net exports on goods and services. D) a decreasing supply of goods and services.
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