The Keynesian Point of View Suggests That

question 76

Multiple Choice

The Keynesian point of view suggests that

• A)supply creates its own demand.
• B)demand creates its own supply.
• C)the market is always at equilibrium.
• D)full employment is the natural result of market forces.
• E)wage and price controls can halt deflationary pressures.

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Definitions:

Great Depression

A severe worldwide economic downturn that took place during the 1930s.

World War I

A global conflict that lasted from 1914 to 1918, involving many of the world's nations, and marked by significant casualties and widespread upheaval.

Overseas Investments

Financial investments made by individuals or companies in foreign countries to acquire assets, stocks, or interests in foreign enterprises.

Welfare Capitalism

An approach to labor relations in which companies provide their employees with social welfare services such as pensions, healthcare, and housing; it gained popularity in the early 20th century in the industrialized Western world.