If a Keynesian Economist Were Asked to Make a Statement

question 134

Multiple Choice

If a Keynesian economist were asked to make a statement about the relationship between the government and the economy,what might she say?

• A) "Government intervention is the only solution for economic problems."
• B) "It is never a good idea for the government to intervene in the economy."
• C) "The government's only role is to provide defense and protect property rights."
• D) "The government should be primarily concerned with public safety and health."
• E) "Government intervention in the economy is sometimes necessary."

---

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, essentially measuring the net benefit to producers from selling at a market price above their minimum acceptable price.

Government Policy

The actions or inactions taken by the governing body to address public issues, which can influence economic conditions, social welfare, and the regulatory environment.

Producer Surplus

The differentiation between the selling price sellers are willing to accept and the price they eventually get.

Government Policy

Strategies and measures adopted by a government to guide its actions in the pursuit of specific goals and objectives.