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AP® Macroeconomics

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Moderate

Keynesian Range Fixes

APMACR-CYKDJE

Suppose AD intersects AS in the Keynesian Range.

Which of the following would NOT be effective in dealing with the realities in the US economy?

A

Higher taxes.

B

Federal jobs programs for the unemployed.

C

Reduce regulations on business.

D

Negotiate for reduced trade barriers with foreign allies.

E

Increase Social Security benefits.