Multiple Choice
Keynes believed that:
A) discretionary fiscal policy was needed to stabilize the economy.
B) wages are not flexible particularly in a downward direction.
C) the economy could remain in a period of unemployment for a long time period.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q16: If the price level is fixed, then
Q17: Which of the following allows us to
Q18: The expenditure multiplier applies only to changes
Q19: Unplanned inventory decreases prompt firms to cut
Q20: If the marginal propensity to consume is
Q22: Consumption expenditure tends to increase when consumers
Q23: Identify factors that would cause consumption spending
Q24: If government spending increased by $100 billion
Q25: Which of the following is not true
Q26: In the simplest Keynesian expenditure model, which