While Most Economists Believe That Keynes Was Correct When He

question 79

Multiple Choice

While most economists believe that Keynes was correct when he placed primary focus on aggregate demand manipulation to solve the recessionary gap of the Great Depression,supply-siders are critical of this focus,claiming that

• A)Keynesian economics can only be successful if interest rates are allowed to rise.
• B)Keynesian economics diverted attention away from important factors such as work effort,labor productivity,and incentives to save and invest.
• C)the Great Depression was caused by the stock market crash of 1929,not a decline in aggregate demand.
• D)greater control of the way in which stocks and bonds were traded would have brought the economy out of the Great Depression.
• E)the supply of goods and services should have been placed under the control of the government until the economy had time to adjust to the decline of aggregate demand.

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Definitions:

Economic Support

Financial assistance provided to individuals or groups to help with living expenses, often from family, government, or charities.

Child Maltreatment

A broad range of behaviors that place a child at serious risk or result in serious harm (often used interchangeably with child abuse).

Physical Abuse

The infliction of physical harm or discomfort onto another individual, often a sign of power imbalance and manipulation in abusive relationships.

Sexual Abuse

Any form of non-consensual sexual contact or behavior, often exerting power over the victim and causing physical or psychological harm.