Which of the Following Economic Statements Would a Keynesian Economist

question 116

Multiple Choice

Which of the following economic statements would a Keynesian economist tend to support?

• A) Government intervention in the economy is unnecessary.
• B) The short run deserves more attention than the long run.
• C) The key determinant of economic growth is long-run aggregate supply.
• D) Savings is a crucial component of economic growth.
• E) The economy tends to be stable and at full employment.

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Definitions:

Raw Materials

The basic materials that are used in the production process of goods, prior to being processed or transformed.

Direct Labor Budget

A detailed plan that shows the amount of direct labor hours required to meet production needs and the associated costs.

Direct Labor-Hours

Hours attributed to workers who are directly involved in the creation or assembly of a company's products.

Budgeted Production

The planned level of production output, determined as part of a company's budgeting process to meet expected demand and inventory requirements.