Both Keynesians and Non-Keynesians Now Recognize

question 66

Multiple Choice

Both Keynesians and non-Keynesians now recognize

• A) the limitations of automatic stabilizers as a stabilization tool.
• B) the adverse effects of high marginal tax rates on economic growth.
• C) the difficulties involved in timing discretionary changes in fiscal policy in a stabilizing manner.
• D) the highly expansionary impact of budget deficits.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by sudden, repeated episodes of intense fear or panic attacks, often accompanied by physical symptoms and concerns about future attacks.

Conversion Disorder

A mental health condition in which a person experiences neurological symptoms, such as paralysis or blindness, that cannot be explained by medical evaluation.

Generalised Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a variety of things, leading to significant distress or impairment.

Obsessive-Compulsive Disorder

A psychological condition marked by ongoing, intrusive thoughts (obsessions) and repetitive actions (compulsions).