According to the Keynesian View, the Prolonged Unemployment of the Great

question 45

Multiple Choice

According to the Keynesian view, the prolonged unemployment of the Great Depression

• A) was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment.
• B) was surprising because Keynesians believed that lower interest rates would direct the economy to full employment.
• C) resulted because the total expenditures on goods and services were less than the full-employment rate of output.
• D) resulted because the federal government ran large budget deficits during the 1930s.