If an economy is experiencing a recession, the Keynesian approach to achieving full employment is to:
A. Use various supply-side options, such as deregulation.
B. Decrease the growth of the money supply.
C. Do nothing.
D. Employ expansionary fiscal policy.
D. Employ expansionary fiscal policy.
You might also like to view...
The term “random walk” means that stock prices are fairly predictable.
Answer the following statement true (T) or false (F)
The theory of liquidity preference illustrates the principle that
a. monetary policy can be described either in terms of the money supply or in terms of the interest rate. b. monetary policy can be described either in terms of the exchange rate or the interest rate. c. monetary policy must be described in terms of the money supply. d. monetary policy must be described in terms of the interest rate.
A cartel of 10 firms that controls 100 percent of the output in a market and faces the same cost schedules that a monopolist would in the market will have to set a price somewhat lower than the monopoly price for its product.
Answer the following statement true (T) or false (F)
Refer to Table 3.1 to answer the following questionTable 3.1 Individual Demand and Supply SchedulesQuantity Demanded byPriceAlejandroBenCarlMarket$8.00842________6.001244________4.002046________2.002246________Quantity Supplied byPriceAveryBrandonCassandra $8.006046________$6.004244________$4.002442________$2.00640________In Table 3.1, if government held the price at $3,
A. The government would be setting an effective price floor. B. The shortage would be the same as the quantity demanded. C. The market would be in equilibrium. D. There would be a shortage.