Which of the Following Is Not True About the Keynesian

question 14

Multiple Choice

Which of the following is not true about the Keynesian consensus?

• A) It was largely discredited in many Western democracies in the 1980s.
• B) It is in no way related to the accumulation of government spending deficits.
• C) It declined and deteriorated in response to an increase in government debt.
• D) It was increasingly challenged in economics and policy-making communities.
• E) It was the belief that governments could and should manage their economies through fiscal policy measures.

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Definitions:

Competitive Process

The dynamic system in which businesses compete with one another for resources, customers, and market share.

Cost Advantages

Refers to the benefit a company has over its competitors in terms of lower production or operation costs.

Monopoly Power

The ability of a single firm or entity to control the market for a good or service, enabling it to influence prices and production levels.

Legal Barriers

Restrictions imposed by law that limit the entry of new firms into an industry or protect existing firms from competition.