HiSET Social Studies Study Questions

Category - HiSET Social Studies Practice Test Quesitons

The Council of Economic Advisors generally advocates that the government pursue goals in line with Keynesian economic theory, which advocates all of the following except:
  1. Increasing national production
  2. Maintaining price stability (or low inflation)
  3. Maintaining low unemployment rates
  4. Allowing the market to correct course naturally when it falters
Explanation
Answer: D - Neither the Council of Economic Advisors nor Keynesian economic theory encourage allowing a faltering market time to correct course naturally. Keynesian economic theory strongly advocates that government get involved in the marketplace to soften the blow of a recession or depression, as well as to encourage productivity. The CEA often promotes proactive government intervention to stave off similar disasters.
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