The Keynesian Approach Assumes That

question 90

Multiple Choice

The Keynesian approach assumes that

• A)there is no unemployment in the economy.
• B)the economy is self-regulating.
• C)the government budget is always in deficit.
• D)the price level is fixed.

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Definitions:

Population Growth Rates

The rate at which the number of individuals in a population increases in a given time period as a result of birth rate, death rate, and net migration.

Industrialization

The process of transforming economies from primarily agricultural to one based on the manufacturing of goods, typically leading to economic growth and development.

Capital Resources

Assets such as machinery, buildings, and equipment used to produce goods and services.

Per Capita Income

The per capita income in a particular area or country, found by taking the total revenue generated in that area and dividing it by the population size.