Multiple Choice
Keynes believed that wages and prices were sticky. Therefore, a rightward shift of the aggregate demand curve would cause a(n) :
A) decrease in the level of income.
B) increase in the unemployment level.
C) change in the long-run aggregate supply curve.
D) increase in employment, production, and income.
Correct Answer:
Verified
Correct Answer:
Verified
Q147: The Great Moderation consensus among macroeconomists is
Q148: Keynesians argued that monetary policy would NOT
Q149: The policies that seemed to be effective
Q150: Many economists favored using discretionary fiscal policy
Q151: According to the classical model:<br>A) the aggregate
Q153: Use the following to answer questions: <img
Q154: Which statement is FALSE?<br>A) Early Keynesianism downplayed
Q155: Rational expectations theory suggests that people and
Q156: Which statement is a point of the
Q157: Economists who agree with the Great Moderation