In the Keynesian model of the business cycles,
A) unanticipated changes in government expenditures cause output to change by change in real wage.
B) anticipated changes in government expenditures cause output to change by changes in real wage.
C) anticipated changes in money supply cause output to change by changes in real wage.
D) anticipated or unanticipated changes in money supply cause output to change by changes in real wage.
Correct Answer:
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Q1: Which of the following statements about the
Q2: The main difference between classical economists and
Q3: The crowing-out effect occurs because of
A)higher prices
Q6: In the Keynesian model,the economy can be
Q7: In the Keynesian model,wages and prices are
A)sticky
Q8: Keynesian business cycle theory cannot account for
Q9: Unanticipated increase in the government expenditures would
A)shift
Q10: The crowding-out effect refers to a situation
Q11: In the Keynesian model,
A)the short-run aggregate supply
Q14: Keynesians are skeptical of the classical theory
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