Question #75
If the economy has unemployed workers but cannot produce any more real output then the government
- has to raise taxation if it wants to achieve full employment.
- has to increase net spending until the spending gap is filled if it wants to achieve full employment.
- will generate inflation if it wants to achieve full employment.
Answer #703
Answer: has to raise taxation if it wants to achieve full employment.
Explanation
Please read Bad luck if you are poor! for more information or post a comment if you are unsure.