According to Keynes,if Private-Sector Demand Is Insufficient to Maintain Full

question 18

Multiple Choice

According to Keynes,if private-sector demand is insufficient to maintain full employment,the government should

• A)act to make the economy's natural transition to the lower level of employment as easy as possible
• B)shock the economy with an increase in aggregate demand
• C)reduce aggregate supply to reduce inflation
• D)print money to promote consumer spending
• E)act to make the economy's natural transition back to full employment as easy as possible

---

Definitions:

Reduction Range

A gearset or mechanism designed to reduce the input speed to a lower output speed, increasing torque in applications like vehicle transmissions.

Idle Rpm

The rotational speed of an engine (in revolutions per minute) when it is idling, or running without any load or acceleration.

Coaxial Spring

A type of spring system where two or more springs are arranged along a common axis, usually one inside the other.

Friction Discs

Components within a mechanical clutch that provide the necessary friction to transfer torque from the driving to the driven shaft, often made of materials that improve grip and durability.