Within the Framework of the Keynesian Model, If Spending Is

question 50

Multiple Choice

Within the framework of the Keynesian model, if spending is abnormally low,

• A) the economy will be in equilibrium at full employment, but inflation will be high.
• B) equilibrium output will be less than the full-employment rate of output.
• C) the equilibrium output rate will exceed the economy's full-employment capacity.
• D) the actual rate of unemployment will be less than the natural rate of unemployment.

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Definitions:

Nonjudgmental Attitude

An approach to interpersonal interactions characterized by acceptance and openness, without making premature judgments or evaluations.

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; implies a desire to do a task well.

Big Five Trait

Refers to five broad domains or dimensions of personality that are used to describe human personality. These are openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Temperament

The inherent part of an individual's personality, including aspects such as mood, behavior tendencies, and emotional reactivity.