The Main Criticism of Those Who Doubt the Ability of the Government

question 76

True/False

The main criticism of those who doubt the ability of the government to respond in a useful way to the business cycle is that the theory by which money and government expenditures change output is flawed.

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Definitions:

Need-Based Theories

Are theories of motivation that focus on what motivates a person, rather than on how that motivation occurs.

Motivation

A psychological force that drives individuals to achieve goals and fulfill needs.

Maslow

Refers to Abraham Maslow, a psychologist known for creating Maslow's hierarchy of needs, a theory in psychology regarding human motivation.

Alderfer

Refers to Clayton Alderfer's ERG theory, which categorizes human needs into existence, relatedness, and growth categories.