Which of the following perspectives exerted the most impact on fiscal policy during the Great Depression?
a. the Keynesian view
b. the supply-side view
c. the view that the federal government should maintain a balanced budget
d. the new classical view that fiscal policy exerts little impact on demand and output
C
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One implication of the shape of the demand curve facing a perfectly competitive firm is that:
A. if the firm increases its price above the market price, it will earn higher revenue. B. if the firm increases its price above the market price, it will earn zero revenue. C. the market would be unable to reach a new equilibrium if demand changed. D. if the firm decreases its price below the market price, it will earn higher revenue.
To find the cost of the CPI market basket in the base period prices we have to multiply the
A) quantities in the CPI market basket by the base period prices and then multiply by 100. B) quantities in the CPI market basket by the base period prices. C) current period quantities in the CPI market basket by the current period prices. D) quantities in the CPI market basket by the current period prices. E) current period quantities in the CPI market basket by the base period prices.
Pat Robertson, a TV evangelist and former Republican Party candidate for president, once said that “debt is an affront to God,” so good Christians should not spend beyond their incomes. Indeed, Robertson wants Christians to save more. If more Americans, Christians as well as others, took his message seriously, how would we represent the result using a Keynesian macroeconomic model?
A. A downward movement along the consumption function B. An upward movement along the consumption function C. A downward shift of the consumption function D. An upward shift of the consumption function
In a monopsony labor market, a minimum wage set equal to the competitive market equilibrium wage rate can ________ the wage rate and ________ employment
A) raise; increase B) raise; decrease C) lower; increase D) lower; decrease