Describe how Keynesian economics is a cyclical phenomenon. Is it leading, lagging, or coincident? Procyclical or countercyclical?
What will be an ideal response?
John Maynard Keynes presented his ideas during, and in response to, the Great Depression, making Keynesian economics a lagging variable, and strongly countercyclical. The Great Inflation of the 1970s is attributed, in part, to Keynesian over-confidence, reinforcing countercyclicality. Interest in Keynesian economics was subdued during the Great Moderation, but has revived markedly during the Great Recession.
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In the fooling model's labor market diagram, from an initial intersection point of the labor supply and demand curves, tracing "northeast" up the labor supply curve shows
A) what happens to real wages and employment when aggregate demand expands. B) what happens to real wages and employment when aggregate demand contracts. C) what workers think is happening to real wages if an aggregate demand expansion fools them. D) what firms think is happening to real wages if an aggregate demand expansion fools them.
Participation in Part B of Medicare is
a. applicable to supplemental hospital payments. b. applicable to nursing home stays c. voluntary. d. involuntary. e. none of the above.
If the required reserve ratio is 0.12, the amount a bank can lend is equal to:
A. 88 percent of its reserves. B. 88 percent of its deposits. C. 12 percent of its reserves. D. 12 percent of its deposits.
The statement "people should pollute as little as possible" is an example of a
A. normative statement. B. positive statement. C. factual statement. D. non-judgmental statement.