In what circumstances would a Keynesian expansionary fiscal policy be most likely to pull an economy out of recession without creating too much inflation?
- Ademand for money: interest elastic; wage flexibility: high; aggregate supply curve: price elastic
- Bdemand for money: interest inelastic; wage flexibility: high; aggregate supply curve: price inelastic
- Cdemand for money: interest elastic; wage flexibility: low; aggregate supply curve: price elastic
- Ddemand for money: interest inelastic; wage flexibility: low; aggregate supply curve: price inelastic