Multiple Choice
Keynesian economists believe that
A) the economy automatically adjusts towards full employment.
B) monetary policy causes business cycles.
C) there are no business cycles.
D) activist government policy is needed to get the economy to full employment.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The Keynesian aggregate expenditure model best describes
Q3: Suppose that a severe shock that decreases
Q4: The Keynesian aggregate expenditure model focuses on
Q5: Suppose disposable income increases from $11 trillion
Q6: At potential GDP<br>A) there is no unemployment
Q7: The level of potential GDP<br>A) increases when
Q8: Which of the following is true?<br>A) The
Q9: The marginal propensity to consume measures<br>A) the
Q10: The impulse leading to business cycles in
Q11: Keynesians and monetarists believe that economic fluctuations