The Fiscal Policy Response to the Recession of 2008-2009 Was

question 47

Multiple Choice

The fiscal policy response to the recession of 2008-2009 was

• A) a substantial increase in the budget deficit just as Keynesian analysis would recommend.
• B) a balanced budget, just as Keynesian analysis would recommend.
• C) a substantial increase in the budget deficit, which was highly inconsistent with Keynesian analysis.
• D) a shift of the federal budget toward a large surplus, which  reflected the views of the critics of Keynesian economics.

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Definitions:

Goal-driven

Motivated or guided by the desire to achieve specific outcomes or objectives.

Understanding of Minds

The ability to attribute mental states—beliefs, intents, desires, emotions—to oneself and others.

Developmental Stages

Distinct periods in an individual’s life which are characterized by unique physical, cognitive, and emotional developments.

Assimilation

In Piaget’s theory, the developing child’s process of interpreting the environment in terms of the schemas he already has.