Problem
1. Explain the Keynesian view of how monetary policy affects income, employment, and output.
2. As full employment is approached, why might the general level of prices begin to rise? Explain why expansionary macro policy is likely initially to impact output rather than the price level.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.