In the Keynesian Model,the Difference Between No Intervention by the Government

question 55

Multiple Choice

In the Keynesian model,the difference between no intervention by the government during a recession and intervention using expansionary monetary or fiscal policy is that no intervention will return the economy to its equilibrium level of output ________ than intervention will and at a ________ price level.

• A)faster;lower
• B)slower;higher
• C)slower;lower
• D)faster;higher

---

Definitions:

United States

A country located in North America, comprised of 50 states, known for its significant economic, cultural, and political influence globally.

Switzerland

A landlocked country in Central Europe known for its high standard of living, neutrality, and picturesque landscapes.

Import

These are goods or services brought into one country from another for sale or use.

Quota

A government-imposed trade restriction limiting the number or value of goods that can be imported or exported during a specific time.