As contrasted to the mainstream view, Keynesian economists believe that ________ than mainstream economists believe.
A) potential GDP is smaller
B) the burden of government debt on future generations is larger
C) the real GDP growth rate is higher
D) fiscal stimulus is weaker
E) the multiplier effect is larger

Question

Quizplus · Accepted Answer

Keynesian economists believe in the concept of the multiplier effect, which suggests that government spending can boost economic growth beyond the initial spending amount. They believe that the multiplier effect is larger than what mainstream economists believe, who tend to believe in a smaller multiplier effect.

As Contrasted to the Mainstream View, Keynesian Economists Believe That