John and Robert are having an argument about the recent economic downturn in Florin. According to John, government intervention is not required to bring the economy back to the natural level of real GDP. However, Robert believes that the only way to restore the economy is to increase aggregate demand through government intervention. From the above argument, we can conclude that Robert believes in
the _____ of thought.
a. Keynesian school
b. classical school
c. neoclassical school
d. new classical school
a
You might also like to view...
When a firm is experiencing economies of scale
A) the MP curve slopes upward. B) the LRAC curve slopes downward. C) diminishing returns to labor have been suspended. D) the MC curve slopes downward.
If the consumption function is defined as C = 7,250 + 0.8Y, what is the multiplier?
A) 0.2 B) 0.8 C) 1.25 D) 5
Hotels R Us and Hotel Supply are two hotel toiletry suppliers that are competing with each other. If Hotels R Us announces an upcoming price change next month, it may be signaling to Hotel Supply its intent to engage in ________.
A) a Cournot oligopoly B) a Stackelberg oligopoly C) tacit collusion D) a Chamberlin oligop
Supply-siders believe that
A. Tax rebates directly affect the supply side of the economy. B. Tax rebates shift the Phillips curve to the left. C. Tax rebates provide greater incentives for work, production, and investment. D. Tax rebates have no effect on work effort.