Conservatives and Keynesians differ on the appropriate response of the government to a recession. Which of the following is a true statement?
A) Keynesians believe that governments should increase spending to make up for a deficiency of aggregate demand.
B) Keynesians believe that governments should intervene in the economy only in the case of an outside shock.
C) Keynesians believe that governments do not need to intervene, because the economy is always in equilibrium.
D) Keynesians believe that governments can prevent an outside shock.
Correct Answer:
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Q12: The following are all aggregate markets discussed
Q13: Keynes disagreed with the neoclassical view of
Q14: Progressive economists argue that recessions and depressions
Q15: Keynes stressed the importance of effective demand,
Q16: Leakages from the circular flow include
A) savings,
Q18: According to Keynesian economists, the problem in
Q19: At very low levels of income, consumer
Q20: The wealthy tend to have
A) higher average
Q21: If the objective of government policy during
Q22: The circular flow of money refers to
A)
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