If the economy were in the Classical range of the aggregate supply curve, government policies and central bank actions should focus primarily on:
a. reducing unemployment.
b. increasing government spending to boost demand.
c. keeping inflation reasonably low.
d. preventing deflation.
e. All of the above.
Question 2
A clear conclusion from offshoring debates and analyses is that:
a. It has significant potential to redistribute income from labor to businesses.
b. Its effect is to increase unemployment in the nation from which offshoring takes.
c. Its effect is always to decrease GDP in the nation from which offshoring takes.
d. All of the above are clear conclusions from these debates and analyses.
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