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Which of the Following Statements Best Characterizes the Keynesian View

Question 18

Multiple Choice

Which of the following statements best characterizes the Keynesian view of business cycles?


A) Fluctuations in business activity occur in regular and predictable patterns that cannot be altered.
B) Fluctuations in business activity are to be expected and should be accepted just as changes in the seasons are accepted.
C) Business cycles are symptoms of underlying problems and should be dealt with through activist government policies.
D) The appropriate macroeconomic policy can easily eliminate all fluctuations in business activity.

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