_____ believe that the primary causes of the Depression were autonomous declines in aggregate demand initiated by shocks to the IS curve
a. Monetarists.
b. classical economists.
c. early and late Keynesians.
d. early Keynesians only.
C
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Policies taken to move the economy closer to potential output
A) must necessarily be contractionary policies. B) are lagging policies or automatic policies. C) are called stabilization policies. D) must necessarily be expansionary policies.
The reduction in aggregate demand caused by deflation:
A. further reduces prices, causing a deflationary spiral. B. will decrease production and increase prices, causing inflation to adjust the price level. C. further reduces prices, causing aggregate supply to shift left back to long-run equilibrium. D. will decrease production and increase prices, causing a deflationary trap.
A market with many firms that sell goods and services that are close substitutes for one another is called:
A. monopoly. B. perfect competition. C. oligopoly. D. monopolistic competition.
Data on labor-force flows show that
A) in any given month, almost none of the unemployed gets jobs. B) in any given month, almost all of the unemployed gets jobs. C) the average duration of unemployment is about 2 weeks. D) the average duration of unemployment is about 2 years. E) in any given month, about one-fourth of the unemployed get jobs.