Question

1)

According to Keynes, the Great Depression was caused by ill-considered expansionary fiscal policy. inflation is always and everywhere a monetary phenomenon. the Phillips curve is stable. balancing the budget in the midst of a depression would be a serious mistake. none of the above

2)

3)

Answer 1

1. Option 4

Explanation: According to Keynes, the government should increase spending to increase aggregate demand.

2. Option 3

Explanation: This term was coined by Keynes to denote the preference of people to hold money.