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:

Dale Carnegie Institute

An educational institution offering courses in leadership, public speaking, sales, and personal development, based on the principles of its founder, Dale Carnegie.

Rapport

The establishment of a trusting and harmonious relationship between people.

Knowledgeable

Possessing or showing a very great deal of information, awareness, or understanding about a particular subject or field.

Complex Purchase

Purchasing decisions that involve extensive research and consideration due to factors like high cost, long-term commitments, or personal importance.