Keynesian Policy

question 80

Multiple Choice

Keynesian policy:

• A) refers to policies that actively shift aggregate demand in an effort to reach full employment.
• B) refers to fiscal policy.
• C) promotes spending more and taxing less to boost economic activity to potential GDP.
• D) All of these are true.

---

Definitions:

Decision-Making Process

A process that begins with identification of a problem and ends with evaluation of results.

Preferred Course

A path or option that is favored or chosen over others due to its perceived benefits or advantages.

Classical Decision Theory

A framework in managerial economics that outlines how decisions should be made, considering variables and outcomes in a rational and structured manner.

Satisfactory Alternative

An acceptable option or solution that meets basic requirements or needs, though it may not be the optimal choice.