The Manipulation of Spending to Influence Aggregate Demand Was First

question 5

Multiple Choice

The manipulation of spending to influence aggregate demand was first put forward because:

• A) the classical view of flexible prices and wages did not necessarily hold in reality.
• B) unemployment often remained stubbornly high for too long during and after a
• Depression.
• C) inflation was extremely high during the Great Depression.
• D) the classical view of flexible prices and wages did not necessarily hold in reality and unemployment often remained stubbornly high for too long during and after a
• Depression.

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Definitions:

Wason's Four-card Task

A logical puzzle presented as a psychological experiment to study conditional reasoning and bias in decision making.

Modus Tollens

Modus tollens is a form of deductive reasoning that takes the structure: If P, then Q. Not Q. Therefore, not P.

Basketball

A team sport where players aim to score points by shooting a ball through a hoop at a certain height.

Inductive Strength

A property of some logical arguments such that it is improbable (but not impossible) for the premises to be true and the conclusion to be false.