The Keynesian perspective supports that government should play a very active role in managing the economy.
Select whether the statement is true or false.
A. True
B. False
B. False
This statement is false. The Keynesian perspective supports that government should play a role in managing aggregate demand, but it does not support the government playing an active role in all areas of the economy.
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Which of the following will NOT shift the Keynesian short-run aggregate supply curve?
A) a change in input prices B) a change in technology C) a change in the price level D) a change in profit expectations
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is
A) -1.25. B) inelastic. C) Both A and B above. D) Neither A nor B above.
Which of the following market structures is characterized by a single firm and huge barriers to entry?
a. Monopolistic competition b. Oligopoly c. Monopoly d. Monopsony e. Perfect competition
Discretionary fiscal policy by the federal government involves
A. legislative variations in spending and tax policies. B. using built-in stabilizers to smooth economic activity. C. relying on wage and price controls to ensure price level stability. D. presidential variations in spending and taxes without Congressional approval.