Assume the Economy Is Operating at a Real GDP Above

question 150

Multiple Choice

Assume the economy is operating at a real GDP above full-employment real GDP. Keynesian economists would prescribe which of the following policies?

• A) Nonintervention
• B) Fixed rule
• C) Contractionary
• D) Expansionary

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Definitions:

Early Majority

A segment of the population that adopts new products or innovations after the innovators and early adopters have done so, representing a significant portion of the market.

Diffusion of Innovation

The process by which a new idea, product, or behavior spreads through populations and cultures over time.

Innovators

Early adopters of new technologies or products, typically willing to take risks on newer offerings before the majority.