A Policy Implication of Keynesian Economics Is That

question 25

Multiple Choice

A policy implication of Keynesian economics is that

• A) full employment will always be maintained.
• B) countercyclical policies have no effect on the economy.
• C) constant growth of the money supply is better than discretionary policies.
• D) countercyclical monetary and fiscal policies can be used to achieve full employment.

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Definitions:

Expert Power

The ability to influence others based on the possession of knowledge, skills, or expertise that is recognized and valued.

Expectation-States Theory

A social theory that explains how individuals' expectations in a group setting influence the dynamics of status and influence within the group.

Status Characteristics

Attributes or qualities that influence an individual's standing or prestige within a social hierarchy, affecting interactions and perceptions.

Ascribed

A status or attribute assigned at birth or assumed involuntarily later in life, not based on individual merit or achievement.