Multiple Choice
The Keynesian view implies that there is a role for monetary and fiscal policy in stabilizing the economy in response to aggregate shocks because
A) prices and wages are slow to clear markets.
B) money is neutral.
C) comovement of aggregate variables does not generally happen during the business cycle.
D) business cycles have many causes.
E) these policies are highly effective in raising total factor productivity.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: If, in the coordination failure model, the
Q2: Increasing returns to scale refers to<br>A) more
Q3: Shocks to total factor productivity are least
Q5: In the real business cycle model, a
Q6: In the coordination failure model<br>A) there is
Q7: In the coordination failure, the most likely
Q8: Extraneous events that are completely unrelated to
Q9: Fiscal policy can stabilize output in the
Q10: The phenomenon of underutilization of labour during
Q11: One potential weakness of the coordination failure