Keynes Believed

question 192

Multiple Choice

Keynes believed

• A)once a recession began,it would always turn into a depression.
• B)full employment GDP was a rare occurrence.
• C)the expected profit rate and the interest rate were equally important in determining the level of investment in an economy.
• D)inflation was a persistent tendency of the economies of his day.

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Definitions:

Tariff

A tariff is a tax imposed by a government on goods and services imported from other countries, used to regulate trade, protect domestic industries, or generate revenue.

Welfare Loss

The decrease in social welfare, usually measured in terms of lost economic efficiency or satisfaction, due to factors like taxes or monopolies.

Import Quota

A restriction imposed by a government on the quantity of a specific good that can be imported into a country during a specified time period.

Domestic Production

Domestic production denotes the total output of goods and services produced within a country's borders, reflecting the overall productive capacity and economic health of the nation.