Because Keynes Believed That the Cause of Persistent High Unemployment

question 28

Multiple Choice

Because Keynes believed that the cause of persistent high unemployment ultimately lay in adequate demand for goods,he proposed that governments use fiscal and monetary policies to

• A) manage interest rates.
• B) manage aggregate demand.
• C) manage savings rates.
• D) manage budget deficits.
• E) manage imports.

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Definitions:

Labour Flexibility

The ability of a workforce to adapt to changes and demands in the workplace, including varied job functions, working hours, and employment conditions.

Base Pay

The fixed amount of money that an employee receives from their employer before any bonuses, benefits, or overtime pay is added.

Employee Performance

The degree to which an employee completes their tasks and meets the goals and objectives set by their employer.

Competency-Based Pay

A compensation system where employees are paid based on their skills, knowledge, and performance, rather than their job title or position.