To Eliminate a Recessionary Gap,Keynesian Theory Indicates That Government Should

question 137

Multiple Choice

To eliminate a recessionary gap,Keynesian theory indicates that government should

• A) increase taxes.
• B) decrease taxes.
• C) increase government purchases.
• D) decrease government purchases.
• E) b or c

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Definitions:

Social Loafing

The phenomenon where individuals exert less effort when working in a group compared to when working alone, due to perceived diffusion of responsibility.

Groupthink

Groupthink is a psychological phenomenon where the desire for harmony and conformity within a group leads to irrational or dysfunctional decision-making outcomes.

Democratic

Relating to or supporting democracy or its principles, where power is vested in the people and exercised directly by them or by their elected agents under a free electoral system.

Discussion

The act of talking about something with another person or a group in order to exchange ideas or decide something.