Keynesian Theory Was a Response to the Prevailing

question 52

Multiple Choice

Keynesian theory was a response to the prevailing

• A) classical theory that held that the economy could suffer from a period of sustained unemployment.
• B) classical theory that held that the economy is self-correcting.
• C) monetarist theory that held that the economy is self-correcting.
• D) monetarist theory that held that monetary policy should be used to return the economy to its potential output.

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Definitions:

Goodness-of-Fit Test

A statistical test used to compare an observed distribution to an expected distribution, to check how well the observed data fits with a specific distribution.

Probability Distribution

A mathematical description that assigns probabilities to different outcomes of a random variable.

Chi-Square Distribution

The Chi-Square Distribution is a statistical distribution used for hypothesis testing and is derived from the sum of the squares of a set of normally distributed random variables.

Degrees of Freedom

The number of values in the final calculation of a statistic that are free to vary.