Which of the Following Describes the Keynesian Approach to the Business

question 259

Multiple Choice

Which of the following describes the Keynesian approach to the business cycle?
I. Unanticipated shocks to aggregate supply drive expansions and recessions.
II. The Keynesian theory is a real business cycle model of the economy.
III. A decrease in business confidence can trigger a recession.

• A) I only
• B) III only
• C) I and II
• D) II and III

---

Definitions:

Government Mandate

A government mandate is a requirement set by governments that individuals or organizations must follow, often under penalty for non-compliance.

Employer Prejudice

Biases or preconceived notions held by employers against certain groups of people, often affecting hiring and work practices.

Discriminating Firms

Companies that differentiate among customers, employees, or others based on certain criteria, often leading to unfair treatment.

Maximize Profits

The process or strategy where a business aims to achieve the highest possible profit margin within its operation, considering constraints and market conditions.