In the View of Keynesian Economists, When an Economy Settles

question 16

Multiple Choice

In the view of Keynesian economists, when an economy settles below full employment, expansionary fiscal policy will result in:

• A) An increase in output and employment
• B) A fall in both inflation and employment
• C) An increase in inflation and a fall in employment
• D) None of the above

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Definitions:

Law Of Effect

One of Thorndike’s laws of learning, which states that the consequence, or effect, of a response will determine whether the tendency to respond in the same way in the future will be strengthened or weakened.

Edward Thorndike

An influential psychologist known for his work on learning theory and the law of effect.

Formulated

The process of creating or devising a strategy, plan, or concept in a detailed and systematic manner.

Condition Your Dog

The process of training your dog to behave in a certain way or respond to certain commands through the use of rewards and punishments.