Which of the Following Statements Best Characterizes the Keynesian View

question 18

Multiple Choice

Which of the following statements best characterizes the Keynesian view of business cycles?

• A)Fluctuations in business activity occur in regular and predictable patterns that cannot be altered.
• B)Fluctuations in business activity are to be expected and should be accepted just as changes in the seasons are accepted.
• C)Business cycles are symptoms of underlying problems and should be dealt with through activist government policies.
• D)The appropriate macroeconomic policy can easily eliminate all fluctuations in business activity.

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Definitions:

Population Proportion

The ratio of members in a group to the entire population that share a particular characteristic.

Alternative Hypothesis

In hypothesis testing, the hypothesis that proposes a difference or effect, contrary to the null hypothesis, which implies no effect or difference.

Null Hypothesis

A statement or assumption that there is no effect or no difference, and it serves as the starting point for statistical testing.

Sample Proportion

The fraction or percentage of observations in a sample that belong to a particular category, used to estimate the proportion in the entire population.