Consider the economy represented by the aggregate demand-aggregate supply diagram, where the economy is not at full employment. Note that AD represents aggregate demand, AS represents aggregate supply, LRAS represents long-run aggregate supply and SRAS represents short-run aggregate supply. Which policy is one that a Keynesian economist might suggest to the government? eliminate quotas on imported goods increase taxes on consumers reduce government spending on bridges and roads the government builds an island off of the coast of Maryland decrease the rent because the rent is too high Show what happens in the short run on the graph if the policy moves the economy too far and the economy reaches higher than full employment. Price level LRAS AD SRAS

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