In the Keynesian model consumption is primarily determined by __________ and investment is primarily determined by __________

Identify the correct statement about a corrective tax. a. Equilibrium occurs at a lower market price after the tax is imposed

b. The social cost curve lies below the private cost curve in the absence of the tax. c. A market becomes allocatively efficient after the tax is imposed. d. The socially optimal level of output is more than the market equilibrium output in the absence of the tax.

_________ policy focused on educational spending and building the skills of the workforce generally contributes to a higher rate of economic growth.

a. Fiscal b. Monetary c. Investment d. Taxation