Which of the following statements is true?
A) Keynes believed wages are inflexible downward but prices (of goods and services) are flexible.
B) Keynes believed an economy could get stuck in a recessionary gap.
C) Keynes originated the idea of efficiency wages.
D) Keynes believed the economy is self-regulating.
E) b and c
B
You might also like to view...
Which of the following is a monetary policy goal?
i. keeping the inflation rate low ii. attaining maximum employment iii. keeping the long-term interest rate at a moderate level A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
An increase in personal saving as a percentage of disposable income contributes to capital deepening
Indicate whether the statement is true or false
Two goods, X and Y, are complementary goods if the demand for X
a. increases when the price of Y increases b. increases when income increases c. decreases when the price of Y increases d. increases as the price of its substitute good increases e. decreases as the price of its substitute good decreases
A certificate issued by a corporation promising to repay a loan with interest to the buyer:
cb. franchise c. article of incorporation d. Stockholm note e. note of stockhold