Effective Keynesian government policies to promote long term economic growth might include:

Question

BlackTom AI · Accepted Answer

Investing in research and development raises long-run aggregate supply by increasing productivity and technological progress, so grants for university R&D are directly aimed at long-term growth.

1) Relevant knowledge points and concepts
- Keynesian policy traditionally emphasizes aggregate demand management (fiscal stimulus, public spending) to address short-run recessions. 
- Long-run economic growth, however, depends on supply-side factors: technological progress, human capital, and capital accumulation. 
- Government interventions that enhance R&D, education, and infrastructure raise total factor productivity, shifting the long-run aggregate supply curve rightward.

2) Complete reasoning process step by step
- Step 1: Identify the aim — promote long-term economic growth, not merely short-run demand stabilization. 
- Step 2: Determine which government policies increase productive capacity: investments that generate innovation, improved skills, and higher productivity. 
- Step 3: Evaluate each option against this criterion.

3) Intermediate logical steps (no numerical calculations)
- Grants to universities fund basic and applied research, producing new technologies and knowledge spillovers that firms can commercialize, boosting productivity over time.
- In contrast, entitlement programs and unemployment benefits mainly transfer income or provide short-term consumption smoothing; they do not inherently increase the economy’s productive capacity.

4) Why the correct answer is correct
- Grants for university research and development directly target innovation and human-capital-enhancing activities, which are key drivers of sustained growth. They create public goods (knowledge) and positive externalities, justifying government support. Thus they are effective Keynesian-compatible fiscal tools for long-run growth.

5) Why other options are incorrect
- In-kind initiatives: vague and not necessarily targeted at productivity-enhancing activities; could be consumption-oriented. 
- Government entitlement programs: provide income security but typically do not raise productivity or potential output. 
- Government unemployment benefits: stabilize demand during downturns but do not increase long-term productive capacity.

6) Conclusion
Therefore, the correct choice is "grants for university research and development." This matches the provided answer.

Effective Keynesian government policies to promote long term economic growth might include:单项选择题

类似问题

Which of the following is not a strength of using fiscal policy as a tool to achieve macroeconomic goals?

Which of the following is the least likely effect of an increase in government spending?

Which of the following is the least likely effect of an increase in government spending?

Automatic fiscal stabilisers:

Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile.

Permanent tax cuts have a larger impact on consumption spending than temporary ones.

Which type of fiscal policy action is most appropriate during an economic boom to prevent overheating and inflationary pressures?

Keynesians government policies include investments in capital. These include

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单

Effective Keynesian government policies to promote long term economic growth might include:单项选择题

类似问题

Which of the following is not a strength of using fiscal policy as a tool to achieve macroeconomic goals?

Which of the following is the least likely effect of an increase in government spending?

Which of the following is the least likely effect of an increase in government spending?

Automatic fiscal stabilisers:

​Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile.

Permanent tax cuts have a larger impact on consumption spending than temporary ones.

Which type of fiscal policy action is most appropriate during an economic boom to prevent overheating and inflationary pressures?

Keynesians government policies include investments in capital. These include

更多留学生实用工具

希望你的学习变得更简单

Many economists oppose a constitutional amendment that would require a balanced budget for the federal government because it would probably make the business cycle more volatile.