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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is aggregate demand?
💡 Hint: Think about the consumption and investment in an economy.
Question 2
Easy
What does the multiplier effect refer to?
💡 Hint: Consider what happens when money circulates in the economy.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does Keynes argue is essential for achieving full employment?
- Automatic market corrections
- Government intervention
- Increased exports
💡 Hint: Think about the actions taken during the Great Depression.
Question 2
True or False: Keynesian theory suggests that markets self-correct to full employment automatically.
- True
- False
💡 Hint: Consider the contrast with Classical economics.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Discuss the implications of a government stimulating the economy during a recession. Include potential short-term and long-term effects.
💡 Hint: Think about both immediate changes in employment and possible future issues.
Question 2
Analyze the effectiveness of tax cuts as a tool to increase aggregate demand. What are potential advantages and disadvantages?
💡 Hint: Evaluate both responses on consumer behavior and fiscal sustainability.
Challenge and get performance evaluation