According to Keynes,if Private-Sector Demand Is Insufficient to Maintain Full

question 18

Multiple Choice

According to Keynes,if private-sector demand is insufficient to maintain full employment,the government should

• A)act to make the economy's natural transition to the lower level of employment as easy as possible
• B)shock the economy with an increase in aggregate demand
• C)reduce aggregate supply to reduce inflation
• D)print money to promote consumer spending
• E)act to make the economy's natural transition back to full employment as easy as possible

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Definitions:

Child Poverty Rate

The percentage of children living in households with incomes below a certain threshold, which is often considered insufficient for meeting basic needs.

Industrial World

Regions or countries characterized by advanced technological infrastructure and a high level of industrialization.

Upper Two Quintiles

Refers to the top 40% of the income distribution in a society, often considered the higher income groups.

Line L

A specific reference to a theoretical line or concept, often used in the context of graphs or models in economics or sciences. (If this isn't a real reference, this would be NO.)