Many economists refer to the Keynesian analysis as the “Keynesian revolution.” How was Keynesian analysis “revolutionary” in comparison to the classical doctrine?
What will be an ideal response?
Keynesian analysis was radically different from the classical doctrine that had prevailed for decades beforehand. It disagreed with the classical doctrine that full employment was the normal equilibrium position for the economy, it challenged Say’s Law, and it advocated the use of deficit spending by the government to escape prolonged economic depressions.
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The money supply would tend to fall if the Fed
A) sells bonds. B) buys bonds. C) lowers the discount rate. D) lowers reserve requirements.
Find an example of the distinction between microeconomics and macroeconomics in today's headlines
What will be an ideal response?
Ways to "game" the budgeting process include
a. delaying sales if just short of a target b. delaying expenses if just short of a target c. accelerating sales once a target is met d. delaying expenses costs once a target is met
The distribution of surplus gained from private parties solving an externality problem on their own, as described by the Coase theorem, is dependent on:
A. which party has more negotiating power or wealth. B. who has more power to see to enforcement. C. where the initial rights of the parties lie. D. None of these statements is true.