In what circumstances is a Keynesian expansionary fiscal policy most likely to lift an economy out of recession without causing excessive 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