The Recession in Real GDP in 1970 During the Nixon

question 23

Multiple Choice

The recession in real GDP in 1970 during the Nixon administration

• A) did not accord with the Keynesian theory because the price level had risen sharply; in the Keynesian model, prices fell when real GDP and employment were falling.
• B) reinforced the Keynesian theory that prices fell when real GDP and employment were falling.
• C) did not accord with the Keynesian theory because expansionary fiscal policies resulted in deflation; in the Keynesian model, prices rose when expansionary fiscal policies were administered to eliminate a recessionary gap.
• D) reinforced the Keynesian theory that fiscal policies were more effective than monetary policies in reducing output gaps.

Comprehend the composition and significance of Net Purchases.

Recognize the components and calculation of Net Sales.

Understand the process of preparing an income statement and the classification of revenues and expenses.

Distinguish between operating expenses and other types of expenses.

---

Definitions:

Prestigious Groups

Social groups that possess high status and are highly regarded in society or specific contexts.

Collectivistic Group Culture

A social culture emphasizing group goals, interdependence, and the prioritization of the group over the individual.

Individualistic Group Culture

A culture within a group that emphasizes individual achievement, autonomy, and interests.

Social Animals

Animals, including humans, that are naturally inclined to live in communities or groups and have complex interactions and relationships with each other.