In the Keynesian Model,the Difference Between No Intervention by the Government

question 18

Multiple Choice

In the Keynesian model,the difference between no intervention by the government during a recession and intervention using expansionary monetary or fiscal policy is that no intervention will return the economy to its equilibrium level of output

• A)faster than intervention will and at a lower price level.
• B)slower than intervention will and at a higher price level.
• C)slower than intervention will and at a lower price level.
• D)faster than intervention will and at a higher price level.

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Definitions:

Common Perception

A widely held view or understanding about a particular thing or situation.

Future Favors

The expectation or hope of receiving help or benefits from others in the future, often as a result of providing help earlier.

Categorical Imperative

A foundational concept in ethics introduced by philosopher Immanuel Kant, which dictates that actions should be performed according to a universal law that everyone could follow.

Ethical Philosophy

Ethical philosophy explores the fundamental questions of right and wrong, virtue and vice, and moral responsibility.