In analyzing recessions, Keynes' view was that
A. the economy may eventually recover by itself, but it takes too long.
B. the government could stimulate aggregate purchases by reducing the budget deficit.
C. the economy will never recover because wages and prices will never adjust downward.
D. any cyclical unemployment will be short-lived, and thus there is no need for increased government spending.
A. the economy may eventually recover by itself, but it takes too long.
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Being a monopolist in the market
A. guarantees a positive short-run profit. B. guarantees a positive long-run profit. C. does not contradict with the rule that profit is maximized where MR = MC. D. All of these responses are correct.
A key resource is a material:
A) that is unlimited in supply. B) that is rationed by the government. C) that is available to monopolies only. D) that is essential for the production of a good.
One economist says that raising taxes on gas would be in the social interest. What does this economist mean?
A) Higher taxes on gas would benefit society as a whole. B) Raising taxes on gas would benefit most of the people. C) Higher taxes on gas would benefit everyone. D) Both answers A and C are correct.
In the long-run, a perfectly competitive firm will achieve
a. An average rate of return b. Above average profits c. Losses d. Economic Profits