Which of these is a central argument of Keynes's General Theory?
a. Competition does not allocate resources efficiently in a modern industrial economy
b. Full employment can be maintained even during a major recession if wage rates are lowered far enough.
c. Modern industrial economies do not tend automatically toward full employment rates of output.
d. Money does not play an important role in either causing or curing recession.
e. Government can best stabilize the economy by letting the market system automatically adjust toward full employment.
c
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The distinguishing feature that determines whether an analysis is classical or Keynesian is
A) the speed of price adjustment. B) the slope of the aggregate demand curve. C) the degree of monopoly power in the economy. D) the assumption about the transmission mechanism of monetary policy.
Marginal cost is:
A. the additional output a firm will get by employing one additional unit of input. B. the additional cost a firm will incur by producing one additional unit of output. C. the total cost a firm will incur by producing a given level of output. D. the costs that sit on the margin, that do not change regardless of the level of output.
The Doing Business As name identifies a company for:
a. Bank accounts b. Sales c. Patents d. None of these
Because the cost of healthcare as a percent of GDP rises and as a result productivity gains tend to fall, it is said the healthcare industry suffers from ________________________.
Fill in the blank(s) with the appropriate word(s).