Which of the following would a Keynesian economist be most likely to stress?
a. Supply creates its own demand.
b. Businesses will not produce goods and services if they do not think people will buy them.
c. You cannot spend your way out of a recession.
d. When the unemployment rate is high, wage rates will fall.
e. A dollar saved is a dollar earned; a high rate of saving is the key to prosperity.
B
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An increase in the price level will
a. increase the equilibrium level of national income b. decrease the equilibrium level of national income c. increase aggregate expenditures d. increase aggregate demand e. have no effect on aggregate expenditure
Evidence of discrimination is most apparent when one compares wages among broad groups
a. True b. False Indicate whether the statement is true or false
If your income goes down, you will probably purchase fewer goods and services.
a. true b. false
Economic analysis is a tool that
A. makes everyone rich. B. aids decision making. C. helps us forgive selfish people. D. helps us understand why people make mistakes.