Multiple Choice
A primary emphasis of the Keynesian school is the economy:
A) has a tendency to always create a full-employment level of output.
B) has a tendency to always create inflationary pressure at all levels of output.
C) has a tendency to eliminate unemployment by lowering wage rates to create an equilibrium in the labor market.
D) is driven by the supply-side of the market.
E) has a tendency to be in equilibrium at less than full employment.
Correct Answer:

Verified
Correct Answer:
Verified
Q37: An increase in the rate of interest,
Q89: Consider the Keynesian consumption function. If disposable
Q100: The investment demand curve as a function
Q207: If income increases from $110,000 to $120,000
Q210: Saving is disposable personal income not spent
Q211: The marginal propensity to consume (MPC)is the
Q213: The marginal propensity to consume (MPC)is computed
Q215: If the interest rate increases, then the:<br>A)economy
Q216: Which one of the following will shift
Q217: As shown in Exhibit 8-3, break-even income