Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 12: Problem 34

The \(\$ 787\) billion stimulus package (LO8) a) had little effect on ending the Great Recession b) ended the Great Recession almost immediately c) was basically a Keynesian strategy to end the recession d) had little effect on the federal budget deficit

Short Answer

Expert verified
The correct statement is (c): The $787 billion stimulus package was basically a Keynesian strategy to end the recession. This is because Keynesian economics emphasizes the use of government intervention and spending to stimulate economic growth during a recession.

Step by step solution

01

Analyzing the statements#a) and b)

Review the effects of the \(787\) billion stimulus package on the Great Recession. Compare the statements (a) and (b) to determine if the stimulus package had little effect on ending the Great Recession or if it ended the Great Recession almost immediately.
02

Understanding the Keynesian strategy

Research on Keynesian economics and its strategies to end recessions to be able to identify if statement (c) - the \(787\) billion stimulus package was basically a Keynesian strategy to end the recession - is correct.
03

Assessing the impact on the federal budget deficit

Analyze the relationship between the stimulus package and the federal budget deficit to determine if statement (d) - the stimulus package had little effect on the federal budget deficit - is accurate.
04

Identifying the correct statement

Based on the information and analysis gathered in Steps 1, 2, and 3, identify the correct statement among options a), b), c), and d).

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

There is an inflationary gap when (LO1) a) equilibrium GDP is equal to full-employment GDP b) equilibrium GDP is smaller than full-employment GDP c) equilibrium GDP is larger than full-employment GDP d) none of these occur

Dynamic scoring is closely related to (??7) a) the crowding-out effect b) the crowding-in effect c) both the crowding-out and crowding-in effect d) neither the crowding-out nor crowding-in effect

The most valid argument against the size of the national debt is that it (LO9) a) will ruin the nation when we have to pay it back b) is owed mainly to foreigners c) leaves future generations less plant, equipment, and housing than would be left had there been a smaller debt d) will bankrupt the nation because there is a limit as to how much we can borrow

Which is the most accurate statement? (LO8) a) The Chinese stimulus package was more successful than the American stimulus package. b) The American stimulus package was more successful than the Chinese stimulus package. c) The Chinese and American stimulus packages were equally successful.

The automatic stabilizers (LO3) a) moderate the extremes of the business cycle b) make the business cycle more extreme c) have virtually no effect on the business cycle
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free