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Assessment
What is the primary focus of Keynesian economics?
Government intervention to manage economic fluctuations
Strict monetary policy and minimal government involvement
Focus on long-term supply-side policies
Reliance on free market to self-correct
According to Keynes, what is a major cause of prolonged unemployment during the Great Depression?
Lack of aggregate demand
High taxation levels
Overregulation of markets
Inflationary pressures
What was Keynes's proposed solution to combat the economic downturn during the Great Depression?
Increase government spending
Cutting government expenditures
Raising interest rates
Decreasing taxes on the wealthy
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