Multiple Choice
What is the essential difference between Keynesian and neoclassical views of macroeconomy?
A) The Keynesian view is that the economy is capable of automatically adjusting to economic changes because of the flexibility of wages,prices,and interest rates,while the neoclassical view is that the economy could get stuck in a recessionary gap because of their inflexibility.
B) The neoclassical view is that the economy can automatically adjust to economic changes because of the flexibility of wages,prices,and interest rates,while the Keynesian view is that the economy could get stuck in a recessionary gap because of their inflexibility.
C) While both views agree on the automatic adjustment ability of the economy,the Keynesian view sees wages as flexible,but the neoclassical view does not.
D) While both views agree on the automatic adjustment ability of the economy,the neoclassical view sees wages as flexible,but the Keynesians do not.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: The Great Depression led to the development
Q9: Neo-classical economists argued that any unemployment which
Q10: What characterized the decades of the 1950s
Q11: Explain why the value of the Canadian
Q12: What did supply-siders see as a solution
Q14: According to Neoclassicist economists,what are the four
Q15: During the Great Depression,several changes in the
Q16: According to Neoclassical theory,if the demand for
Q17: With which of the following events are
Q18: Which of the following is a statement