What Was John Maynard Keynes's Primary Message Concerning Recessions and Depressions

question 43

Multiple Choice

What was John Maynard Keynes's primary message concerning recessions and depressions?

• A) Governments should not intervene in the economy but leave the economy to recover of its own accord from a recession or depression.
• B) Recessions and depressions can occur as a result of inadequate aggregate demand for goods and services.
• C) Long-run policy intervention by governments is needed to avoid recessions and depressions.
• D) Recessions and depressions are entirely monetary phenomena.

---

Definitions:

Interval Estimate

An estimate of a population parameter that specifies a range within which the parameter is expected to lie, often associated with a confidence level.

Test Statistic

A measure calculated from sample data to make decisions about a population parameter in hypothesis testing.

Null Hypothesis

A hypothesis that there is no effect or no difference, and it serves as the default or starting assumption in hypothesis testing.

Point Estimate

A single value (or point) derived from a sample that serves as the best estimate of an unknown population parameter.