Keynesian Macroeconomic Principles Quiz
Test your knowledge on Keynesian economics principles, policies, and critiques with this comprehensive quiz.
#1
Which of the following is a key characteristic of Keynesian economics?
Supply-side policies are prioritized.
The government intervenes to stimulate demand.
Free market forces regulate the economy.
Monetary policy is the primary tool for economic stability.
#2
Which of the following is a key assumption of Keynesian economics?
Expectations are always rational.
Wages and prices are flexible.
Markets are perfectly competitive.
Aggregate demand determines output and employment.
#3
What is the 'Paradox of Thrift' according to Keynesian economics?
An increase in savings leads to a decrease in investment and consumption.
A decrease in savings leads to an increase in investment and consumption.
An increase in savings leads to a decrease in investment but an increase in consumption.
A decrease in savings leads to an increase in investment but a decrease in consumption.
#4
Which of the following is a key component of Keynesian macroeconomic policy?
Reducing government spending during economic downturns.
Increasing taxes during economic downturns.
Increasing government spending during economic downturns.
Implementing austerity measures during economic downturns.
#5
Which of the following is a criticism of Keynesian economics?
It relies too much on government intervention.
It ignores the role of aggregate supply.
It cannot explain stagflation.
It is too focused on long-term economic growth.
#6
Which of the following is a primary focus of Keynesian economics?
Maintaining a balanced budget.
Managing inflation.
Minimizing unemployment.
Promoting economic growth.
Sign In to view more questions.
Quiz Questions with Answers
Forget wasting time on incorrect answers. We deliver the straight-up correct options, along with clear explanations that solidify your understanding.
Popular Quizzes in Economics
Report