During a recession, some workers would urge the government to increase its purchases temporarily (for example, by
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During a recession, some workers would urge the government to increase its purchases temporarily (for example, by building roads) so as to increase employment and raise wages. If you were a classical economist, would you agree with this statement? Explain your answer in terms of the labor market, the FE–IS–LM model, and the practical difficulties associated with this approach.
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