An economist from which of the following schools of thought would most likely say - "An increase in government expenditure will only increase inflation, because the aggregate supply curve is vertical"?
a. Neoclassical economics
b. Traditional classical economics
c. New Keynesian economics
d. Keynesian economics
e. Marxist economics
b
You might also like to view...
Wide acceptance of money without intrinsic value comes largely from the fact that it:
A. has a stable value. B. is convenient to use. C. is hard to counterfeit. D. can be used domestically and internationally.
Which of the following is most likely an example of specialization?
a. People work on an assembly line. b. A restaurant divides up the task of serving meals into a range of jobs like top chef, sous chefs, less-skilled kitchen help, and servers to wait on the tables. c. Only those with medical degrees qualify to become doctors. d. A family decides to grow their own crops.
Which of the following is a main political objection against using the market to reduce pollution?
A. Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare. B. Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters. C. Firms already pay a high corporate tax. D. Consumers do not have the same built in tax loopholes as firms.
What does the upper half of the diagram represent—the part marked 1?
a. the product market b. the factor market c. the government flow of resources d. the flow of income