Challenges to Keynesian Economics Were Based On

question 286

Multiple Choice

Challenges to Keynesian economics were based on:

• A)the fact that lags in fiscal policy make it relatively ineffective.
• B)the liquidity trap, which makes fiscal policy ineffective.
• C)the possibility of a trade-off between inflation and unemployment.
• D)the usefulness of discretionary fiscal policy.

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Definitions:

Unemployed Category

A classification for individuals who are without jobs and actively seeking work within the labor market.

Unpaid Workers

Individuals who contribute labor without receiving monetary compensation, often found in family businesses or volunteer services.

Unemployed Category

A classification for individuals who are capable of working but are not currently employed and are actively seeking employment.

Bureau of Labor Statistics

A U.S. government agency that collects, processes, analyzes, and disseminates essential statistical data on labor market activity, working conditions, and price changes in the economy.