Which one of the following statements is NOT true?
A) According to classical theory, wages and prices are flexible, so an economy can recover quickly from a downturn without government intervention.
B) According to Say's law, if there are no savings, taxes, or imports, there will always be enough demand in the economy to prevent a downturn.
C) According to Keynesian theory, wages and prices are sticky, so an economy may not be able to recover quickly from a downturn without government intervention.
D) According to monetarist theory, controlling the growth of money is the key to preventing stagflation.
Correct Answer:
Verified
Q16: If government spending is less than the
Q17: If government spending is greater than the
Q18: If government spending is _ than the
Q19: Suppose that the total debt of the
Q20: Suppose that the total debt of the
Q22: Which of the following is NOT a
Q23: According to monetarist theory, inflation is a
Q24: Stagflation refers to inflation and stagnant:
A) real
Q25: A combination of stagnant real GDP and
Q26: Which of the following statements is true?
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents