What are the defining features of Keynesian macroeconomics and what policies do Keynesian macroeconomists recommend?
What will be an ideal response?
Keynesian macroeconomists believe that if the economy was left alone, it would rarely operate at full employment. To achieve and maintain full employment the economy needs active help from fiscal and monetary policy. Aggregate demand fluctuations combined with a very sticky money wage rate are the major sources of the business cycle. Keynesian macroeconomists assert that active fiscal and monetary policy, designed to offset fluctuations in aggregate demand, are the proper government policies.
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A proof by contradiction can only be used to disprove a statement but not to prove a statement to be correct.
Answer the following statement true (T) or false (F)
You would expect that your firm is experiencing increasing returns to scale if
a. Long run average costs increase with output b. Long run average costs decrease with output c. Long run average costs are constant with respect to output d. None of the above
Which of the following is an example of money serving as a medium of exchange? a. John buys a cup of coffee and a roll at the faculty dining room. b. Steve puts a five-dollar bill in his money belt
c. Scott deposits cash into a savings account. d. Roland puts his coins into a piggy bank.
Demand is a schedule of
A) how much of a good a person wants. B) how much of a good people will purchase at each different possible price. C) how much of a good people will purchase at each income level. D) each possible price and the amount people will buy when their incomes change.