Which of the Following Perspectives Exerted the Most Impact on Fiscal

question 20

Multiple Choice

Which of the following perspectives exerted the most impact on fiscal policy during the Great Depression?

• A) the Keynesian view
• B) the supply-side view
• C) the view that the federal government should maintain a balanced budget
• D) the new classical view that fiscal policy exerts little impact on demand and output

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Definitions:

Product

A good or service that is created, manufactured, or offered for sale to meet consumer demand.

Consumers

are individuals or entities that use goods and services generated within the economy.

Government Subsidy

Financial support given by the government to businesses, individuals, or other governmental bodies to encourage production and consumption, reduce inequalities, or support economic activities deemed beneficial for society.

Product Supply

The total amount of a product or service that is available for purchase at any given time or price.