According to Keynes, when the economy falters, the government should do any of the following except
A. Make more money available.
B. Buy more output.
C. Practice a laissez faire policy approach.
D. Provide more dollars for unemployment benefits.
Answer: C
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Refer to Figure 7-2. Marginal social benefit is represented by which curve?
A) Supply B) D2 C) D1 D) All of the above represent marginal social benefit.
If output is increased in the long-run, then in the presence of internal economies of scale the number of firms will ________, and in the presence of constant external returns to scale the number of firms will ________
A) decrease; decrease B) increase; remain constant C) remain constant; increase D) decrease; remain constant E) increase; decrease
Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:
A. P5 and Y1.
B. P5 and Y2.
C. P4 and Y1.
D. P4 and Y2.
To protect depositors against bank failures, the federal government created which of the following in 1933?
a. Federal Reserve System b. Resolution Trust Company c. Federal Savings and Loan Insurance Corporation d. Federal Deposit Insurance Corporation e. Excess Reserve Insurance Corporation