Keynesians tend to agree that during a depression:
A. governments should not do anything because anything they do will likely make the situation worse.
B. decreasing government spending is likely to improve economic conditions.
C. increasing taxes is likely to improve economic conditions.
D. increasing government spending is likely to improve economic conditions.
Answer: D
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Oscar and Felix room together in an apartment in New York City. Oscar is very messy and Felix is obsessed with neatness. Felix cannot stand a messy apartment and is even willing to pay Oscar $50 per week for him to clean up after himself
Oscar hates to clean up so much that he is willing to pay Felix $30 per week to maintain his messy habits. If Felix has the right to a clean apartment explain why the apartment will be clean. If Oscar has the right to remain messy explain why the apartment will still be clean.
When poverty is defined by an relative real income level, what will happen to the poverty rate if the distribution of income is not perfectly equal?
A) The poverty rate will increase forever. B) The poverty rate will eventually be zero. C) The poverty rate will always remain constant. D) The poverty rate will change, but always exist.
Given the same marginal revenue product (MRP) and supply curves, the equilibrium quantity of labor employed in a monopsonistic labor market will be:
A. equal to that in a competitive labor market. B. less than that in a competitive labor market. C. greater than that in a competitive labor market. D. there is insufficient information for a conclusion.
Refer to the graph shown. If the firm maximizes profit, its daily output will be:
A. 30 units. B. 45 units. C. 20 units. D. 10 units.