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A Neoclassical Critic of Keynesianism Would Be Most Likely to Make

Question 9

Multiple Choice

A neoclassical critic of Keynesianism would be most likely to make which of these arguments?


A) Economic downturns are largely a result of decreased productivity and not a slump in consumption as Keynesians believe.
B) Keynesians are wrong to assert that higher taxes on the wealthy will stimulate consumer spending at the lower ends of the economy.
C) Keynesian policy relies on politicians to decrease spending during economic boom times,but politicians are generally unwilling to do this.
D) The economy does not respond to any type of government economic policy,so it is foolish to believe that the business cycle can be managed.

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