20) According to Keynes, involuntary unemployment is possible because of A) government interference in the market economy. B) the existence of capital markets C) inflation. D) long-term labor...

20) According to Keynes, involuntary unemployment is possible because of A) government interference in the market economy. B) the existence of capital markets C) inflation. D) long-term labor contracts and the existence of labor unions 21) One characteristic of built-in or automatic stabilizers is that A) they require no new legislative action by Congress to have an effect. B) they automatically produce surpluses during recessions and deficits during inflation. C) they have no effect on the distribution of income. D) they reduce the size of the public debt during times of recession. 22) The government wants to increase its spending by S1 billion to stimulate the economy and is counting on the government spending multiplier to help. Taking into account direct expenditure offset effects, what is its best spending option? A) Constructing more low income housing B) A new cruise missile for the military D) Expanding the school lunch program C) Providing textbooks for college students