How Did Keynes Propose to Solve the Problem of High

question 48

Multiple Choice

How did Keynes propose to solve the problem of high unemployment?

• A)increase the growth rate of the money supply
• B)allow wages to decline so that firms will want to hire more workers
• C)put on wage and price controls so that wages won't rise and firms won't have to lay people off to cut costs
• D)have the government increase its demand for goods and services

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Definitions:

Incubation

Incubation is the process of maintaining controlled environmental conditions to facilitate the development of embryos or the growth of microorganisms.

Unconsciously

Operating or existing outside of conscious awareness or perception.

Spreading Activation

A model in cognitive psychology that explains how information is retrieved in the brain, suggesting that thoughts and ideas spread across networks of neurons.

Domain Knowledge

In-depth understanding or expertise in a specific area or subject.