Keynesians

question 102

Multiple Choice

Keynesians:

• A) accept the countercyclical policy of doing nothing, that is, allowing market forces to work.
• B) believe that the level of aggregate demand in the 1930s was sufficient to generate full employment.
• C) accept the fact that policymakers should eliminate inflation first before focusing on unemployment.
• D) focus on increasing aggregate demand in order to stimulate the economy.

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Definitions:

Primary Labour Market

describes sectors of the economy that offer high-paying jobs, secure employment, good working conditions, and benefits.

Supply And Demand

An economic model explaining price determination in a market based on the relationship between the quantity of a commodity available and the desire of buyers for it.

Democratic Socialist Government

A political system where socialism and democracy coexist, aiming to distribute wealth and resources more equitably while maintaining democratic freedoms.

Government Intervention

Actions taken by a government to influence or directly regulate various activities within its territory, often to achieve social or economic objectives.