Rather Than Seeking to Balance the Budget, Keynesian Economists Argue

question 61

Multiple Choice

Rather than seeking to balance the budget, Keynesian economists argue that the government's tax and spending policies should be determined by the

• A) demand for government-provided public goods.
• B) level of aggregate demand required to achieve full employment of resources.
• C) size and quality of the labor force.
• D) need to expand or contract the supply of money.

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Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than information that comes later.

Bottom-up Approach

A strategy or method that begins with specific details or elements and builds up to a more general, comprehensive system or understanding.

Top-down Approach

A problem-solving strategy that starts with the big picture before breaking it down into smaller, more manageable parts.

Schema-inconsistent

Pertains to information or events that do not fit within existing cognitive frameworks or expectations.