Within the Framework of the Keynesian Model, If Spending Is

question 50

Multiple Choice

Within the framework of the Keynesian model, if spending is abnormally low,

• A) the economy will be in equilibrium at full employment, but inflation will be high.
• B) equilibrium output will be less than the full-employment rate of output.
• C) the equilibrium output rate will exceed the economy's full-employment capacity.
• D) the actual rate of unemployment will be less than the natural rate of unemployment.

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Definitions:

Normative Ethics

A branch of ethics concerned with establishing how things should or ought to be, focusing on the establishment of moral standards that guide actions.

Ethical Relativism

The perspective that moral standards vary across cultures and individuals, and that there are no universal ethical truths.

Socially Defined Behaviour

Actions or behaviors that are shaped, influenced, or regulated by the societal norms and values of a community.

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