The concept that market forces in the macroeconomy can remedy a recession is referred to as:
Keynesianism: the use of expansive fiscal and monetary policies to resolve a recession.
The self-correcting mechanism
The consumption function
The paradox of thrift
The self-correcting mechanism
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If the government were to decrease corporate income tax, we would predict a:
A. downward movement along the aggregate demand curve. B. shift in aggregate demand to the right. C. shift in aggregate demand to the left. D. shift straight down of aggregate demand.
A market situation where a small number of sellers compose the entire industry is called
a. monopolistic competition. b. monopsony. c. monopoly. d. oligopoly.
Deficits financed by borrowed money lead to inflation, and in a fixed or crawling peg exchange rate system, this leads to the real exchange rate being undervalued
Indicate whether the statement is true or false
In college you could barely afford to dine in restaurants. Now you earn $80,000 a year and dine out at least three times per week. We can safely conclude that you consider restaurant meals to be a(n)
A. inferior good. B. substitute good. C. normal good. D. complementary good.