The Keynesian Analysis of Fiscal Policy Implies That

question 69

Multiple Choice

The Keynesian analysis of fiscal policy implies that

• A) fiscal policy should generally be expansionary except during periods of economic recession.
• B) fiscal policy should generally be restrictive except during inflationary booms.
• C) the federal budget should be balanced annually except during war.
• D) the federal budget should be used to maintain aggregate demand at a level consistent with full employment.

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Definitions:

Anxiety Disorder

A psychological condition identified by intense emotions of anxiety, worry, or fear which significantly disrupt daily life tasks.

Tardive Dyskinesia

A neurological syndrome resulting from long-term use of neuroleptic drugs, characterized by repetitive, involuntary movements.

Antipsychotic Drugs

Medications used to treat psychotic disorders, such as schizophrenia, by modifying neurotransmitter levels in the brain.

Involuntary Jerks

Sudden, uncontrolled muscle movements or spasms that occur without the person intending them.