+1 862 207 3288 5. What advice would Keynesian economists give Congress regarding how to reduce inflation if the inflation rate increased to 13% this year? Would they recommend Congress raise or lower taxes? Why? Would they recommend Congress increase or decrease government spending? Why? If Congress followed this advice, how would the economy get back to full employment? Illustrate your answer with an aggregate demand and aggregate supply graph. Assume only one curve shifted (aggregate demand or short-run aggregate supply). Identify abbreviations, e.g. P = price level, Q = real GDP.
