If an Economy Were Experiencing a High Rate of Unemployment

question 84

Multiple Choice

If an economy were experiencing a high rate of unemployment as the result of insufficient aggregate demand, a Keynesian economist would favor:

• A) a reduction in taxes coupled with a reduction in government expenditures of equal size.
• B) an increase in government expenditures coupled with an increase in taxes of equal size.
• C) a reduction in taxes, without any offsetting reduction in government expenditures.
• D) maintenance of a balanced budget.

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Definitions:

The Crash

Refers to a significant economic decline, often used to describe the stock market crash of 1929 that precipitated the Great Depression.

Sacco-Vanzetti Case

A controversial legal case in the early 20th century in which Nicola Sacco and Bartolomeo Vanzetti, Italian-American anarchists, were convicted of murder and executed, sparking global protests.

Women

Female human beings, taking into account their roles, rights, responsibilities, and status across various cultures and societies.

Mass-Production

The manufacturing of large quantities of standardized products, often on assembly lines, making goods cheaper and more accessible but also leading to socio-economic changes.