Some economists believe that a positive aggregate demand shock to an economy with large amounts of excess capacity and unemployment does NOT necessarily cause an increase in prices. Economists who adhere to this belief are followers of
A. supply-side economics.
B. classical economics.
C. Keynesian economics.
D. Say's laws of economics.
Answer: C
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When applying the marginal principle, you should pick the level at which the activity's marginal benefit equals its marginal cost
Indicate whether the statement is true or false
Temporary tax cuts will have a greater influence on consumption expenditures than temporary tax cuts
Indicate whether the statement is true or false
Classical economists
a. argued that the money supply determined aggregate demand. b. regarded monetary policy as unimportant since the quantity of money does not determine the price level. c. believed that the quantity of money influences interest rates and real wages. d. believed that prices would increase more than proportionate to an increase in the money supply.
Andrew Carnegie dominated the steel industry on the basis of the Bessemer converter. This technology permitted unskilled men to produce large quantities of steel at relatively low costs. This technology was
(a) invented by Carnegie. (b) stolen from the British inventor Bessemer. (c) acquired legally from the British inventor Bessemer. (d) imported from Germany.