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If Smith Believes the Economy Is Self-Regulating,then Smith

Question 135

Multiple Choice

If Smith believes the economy is self-regulating,then Smith


A) is less likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones,who believes the economy is not self-regulating.
B) is more likely to advocate expansionary fiscal policy when the economy is in a recessionary gap than Jones,who believes the economy is not self-regulating.
C) will believe that there is zero crowding out,too.
D) will believe that wages are inflexible downward,too.
E) b and d

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