Which is true of the "Keynesian" approach to economic policymaking? A. It endorses the idea of "supply-side" economics B. It dominated economic policymaking in the U.S. prior to 1932 C. It advocates tax cuts to stimulate the economy D. It relies on government spending to stimulate a more favorable economic performance
Added by Diego W.
Close
Step 1
Step 1: The Keynesian approach to economic policymaking is based on the ideas of British economist John Maynard Keynes, who advocated for government intervention in the economy to manage aggregate demand and stabilize economic fluctuations. Show more…
Show all steps
Your feedback will help us improve your experience
James Kiss and 50 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Which of the following statements does NOT reflect Keynesian ideas? a) If someone wants to help the economy get out of a recession, those individuals should increase their spending. b) Government policy should focus on counteracting short-run fluctuations in the economy. c) Government policy should intervene during a recession because the economy cannot correct itself. d) Wages and prices are inflexible ('sticky') in the downward direction.
James K.
Which of the following policy recommendations are consistent with the classical, Keynesian, monetarist, and/or Great Moderation consensus views of the macroeconomy? a. since the long-run growth of GDP is $2 \%$, the money supply should grow at $2 \%$ b. Decrease government spending in order to decrease inflationary pressure. c. Increase the money supply in order to alleviate a recessionary gap. d. Always maintain a balanced budget. e. Decrease the budget deficit as a percent of GDP when facing a recessionary gap.
Which of the following policy recommendations are consistent with the classical, Keynesian, monetarist, and/or Great Moderation consensus views of the macroeconomy? a. Since the long-run growth of GDP is $2 \%$, the money supply should grow at $2 \%$ b. Decrease government spending in order to decrease inflationary pressure. c. Increase the money supply in order to alleviate a recessionary gap. d. Always maintain a balanced budget. e. Decrease the budget deficit as a percent of GDP when facing a recessionary gap.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD