Question

According to the Keynesian framework, ________ may cause a recession, but not inflation. a. a major trading partner's economic slowdown b. a decrease in interest rates c. an increase in domestic investment d. a decrease in a major trading partners export prices

Answer 1

Answer:

a major trading partner's economic slowdown

Explanation:

Unemployment is the main concern in Keynesian framework. It emphasis on the fight against the Unemployment and Inflation. The only event that major trading partner's economic slowdown will only effect the unemployment but not inflation. Decrease in prices and domestice investment is not causes of recession in the economy.