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QUESTION

When the U.S government increase its spending during the Great Depression there was no result inflation because: unemployment was very high b. the...

When the U.S government increase its spending during the Great Depression there was no result inflation because:

a. unemployment was very high

b. the economy had lots of excess capacity.

c. at that level of output, the AS curve was basically flat.

d. GDP was far below the full-employment level.

e. all of these

Explain your choice.

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