Which of the Following Perspectives Exerted the Most Impact on Fiscal

question 68

Multiple Choice

Which of the following perspectives exerted the most impact on fiscal policy during the Great Depression?

• A) The Keynesian view.
• B) The supply-side view.
• C) The view that the federal government should maintain a balanced budget.
• D) The new classical view that fiscal policy exerts little impact on demand and output.

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Definitions:

Physically Separated

A state or condition where two or more entities are not connected or in direct contact with each other, often referring to geographical distance.

Elastic Demand

A situation where the demand for a product or service significantly changes in response to price fluctuations, with greater sensitivity indicating higher elasticity.

Single Price

A market condition where a good or service is sold at the same price to all customers, regardless of purchase quantity or location.

Nondiscriminating Monopolist

A monopolist that charges the same price to all customers, as opposed to engaging in price discrimination where different prices are charged to different customers.