Keynesian economics:
A) affirms the classical economists' basic premise concerning competitive markets.
B) believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly.
C) emphasizes the possibility that an economy can never be in equilibrium at less than full employment.
D) believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.
Correct Answer:
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Q14: The most appropriate countercyclical policy, or stabilization
Q15: The popular theory prior to the Great
Q16: Keynesians:
A) accept the countercyclical policy of doing
Q17: The dominant school of economic thought until
Q18: According to Keynes, what is the most
Q20: A primary emphasis of the Keynesian school
Q21: If, for a given disposable income level,
Q22: If your disposable income increases from $30,000
Q23: When economists say that private investment is
Q24: The nation has its own MPC. When
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