Which of the following schools of economic thought will recommend an expansionary fiscal policy to reduce the unemployment rate?
A. the rational expectation school
B. the monetary schools
C. the Keynesian school
D. the classical school
Answer: C
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A sole proprietor has limited liability and cannot be forced to pay its creditors from his/her personal resources
Indicate whether the statement is true or false
Assume the government decides to decrease taxes and to finance the expected budget deficit with borrowing in the real credit market. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real credit market with demand for real credit shifting to the right. b. Start the analysis in the real goods market with aggregate demand shifting to the left. c. Start the analysis in the real goods market with aggregate supply shifting to the left. d. Start the analysis in the real goods market with aggregate supply shifting to the right. e. Start the analysis in the real credit market with demand for real credit shifting to the left.
Compared to workers in poor countries, workers in richer countries have
A. lower productivity but higher wages. B. higher productivity and higher wages. C. higher productivity but lower wages. D. the same productivity but higher wages.
Opportunity Cost:
A. is never provided in dollar values. B. would not include lost wages from working when deciding to take a vacation. C. only includes explicit, out of pocket expenses. D. is the value of your next best alternative.