Expansionary Policy Only Leads to Inflation,but Does Not Raise Output

question 22

Multiple Choice

Expansionary policy only leads to inflation,but does not raise output in ________.

• A)traditional Keynesian theory
• B)new Keynesian theory
• C)real business cycle theory
• D)traditional Keynesian,new Keynesian and real business cycle theory

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Definitions:

Higher Needs

In Maslow's hierarchy, these are psychological needs relating to self-fulfillment, such as self-actualization and esteem needs, considered more complex than basic physiological or safety needs.

Actual Survival

The real, physical continuation of life or existence, especially under adverse conditions.

Hierarchy of Needs

A psychological theory proposed by Abraham Maslow that prioritizes human needs from the most basic physical needs to higher-level psychological needs and self-fulfillment.

Physiological Needs

Basic physical requirements necessary for human survival, such as food, water, and shelter.