Multiple Choice
According to Keynesian theory:
A) the long-run and short-run aggregate supply curves are identical.
B) a decrease in aggregate demand leads to decreases in output and prices in the short run.
C) a decrease in aggregate demand will decrease prices but not output in the short run.
D) the short run is relatively unimportant.
Correct Answer:
Verified
Correct Answer:
Verified
Q85: Which statement does NOT describe the Great
Q86: New classical economics:<br>A) focuses on short-run economic
Q87: "A consistent countercyclical policy has no effect
Q88: The Great Moderation consensus regarding the use
Q89: According to the Great Moderation consensus: I.
Q91: In a liquidity trap:<br>A) fiscal policy becomes
Q92: According to the theory of new classical
Q93: The political business cycle refers to policies
Q94: Most economists today believe that effective monetary
Q95: Under which conditions do some macroeconomists believe