Which of the Following News Quotes Best Describes a Keynesian

question 106

Multiple Choice

Which of the following news quotes best describes a Keynesian view of a recession?

• A)"Rapid computerization is creating obsolete workers and higher unemployment."
• B)"The unexpectedly tight fiscal policy is raising spending and lowering unemployment."
• C)"The anti-inflationary policy of the Bank of Canada is increasing spending."
• D)"The cuts in government spending have helped lower consumer spending and created unemployment."
• E)"Businesses are very worried about future sales and have lowered their purchases of capital equipment."

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Definitions:

World Price

The global market cost for a product or service, set by the overall demand and supply dynamics.

Baseballs

Spherical balls used in the sport of baseball, typically constructed from cork, rubber, yarn, and leather.

Net Welfare Loss

The decrease in total societal wellbeing and efficiency due to factors such as market failure or government intervention.

Tariff

A levy placed by a government on goods that are brought into or sent out of a country.