Multiple Choice
The key difference between Keynesian and Classical economists is
A) Keynesians favour a role for government in managing the economy.
B) Classical economists favour a role for government in managing the economy.
C) Keynesians believe wages and prices are perfectly flexible.
D) Classical economists propose a "menu cost" model.
E) Keynesians believe that monetary and fiscal policies are detrimental to the economy.
Correct Answer:

Verified
Correct Answer:
Verified
Q27: Stabilization policy refers to using government policy<br>A)
Q28: Changes in the money supply in the
Q29: Prices may be sticky in the short
Q30: The advantage of government intervention when a
Q31: In the long run,most Keynesians believe<br>A) government
Q33: The New Keynesian model predicts that<br>A) money
Q34: In the New Keynesian model,an increase in
Q35: Applying the Taylor Rule estimated by Glenn
Q36: The New Keynesian model has the property
Q37: New Keynesian economics refers to<br>A) the monetarist