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:

Economic Discrimination

Unfair treatment of individuals based on economic factors, such as income, wealth, or consumption patterns.

Diagram

A diagram is a simplified drawing showing the appearance, structure, or workings of something; used extensively to explain economic theories and models.

Crowding Model

A theory suggesting that public sector spending reduces the amount of resources available for the private sector.

Occupational Segregation

The division of labor based on demographic characteristics, such as gender, ethnicity, or race, leading to a concentration of individuals in certain occupations.