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:

Complex Environment

An environment characterized by various interconnected parts and variables, which can change unpredictably and affect outcomes significantly.

Nonroutine Tasks

Activities or jobs that require creativity, problem-solving, and are not performed in a regular, predictable manner.

Empowered Workforce

A group of employees who are given the authority and responsibility to make decisions and act autonomously.

Delegation

The process of assigning responsibility and authority to others to complete specific tasks or functions while retaining overall accountability.