Keynesian economic models emphasize the role of:Question 12Answera.Aggregate demand (AD) and government interventionb.Supply and demand in free marketsc.Long-term economic growthd.Savings and investments
Question
Keynesian economic models emphasize the role of:Question 12Answera.Aggregate demand (AD) and government interventionb.Supply and demand in free marketsc.Long-term economic growthd.Savings and investments
Solution
The Keynesian economic model emphasizes the role of:
a. Aggregate demand (AD) and government intervention
Keynesian economics is a theory that says the government should increase demand to boost growth. Keynesians believe consumer demand is the primary driving force in an economy. As a result, the theory supports the expansionary fiscal policy. Its main tools are government spending on infrastructure, unemployment benefits, and education.
Similar Questions
The theory of Keynesian economics emphasizes the role of:Question 9Answera.Aggregate demand (AD) in driving economic activityb.Aggregate supply (AS) in determining price levelsc.Free markets and laissez-faire policiesd.Government regulation of international trade
The key assumption of the basic Keynesian model is that in the short run, firms:Group of answer choicesmeet demand at preset prices.change prices rather than quantities.operate just as they do in the long run.change prices frequently.adjust prices to bring sales in line with capacity.
48.Keynesian economists believe that in the short run, changes in aggregate demand can lead to fluctuations in: A. Long-run economic growth B. Potential output C. Inflation only D. Unemployment and output levels
One limitation of Keynesian economic models is their failure to adequately address:Question 3Answera.Supply-side factors and incentivesb.Aggregate supply (AS) fluctuationsc.Government budget deficitsd.Exchange rate policies
The Keynesian school of thought emphasizes the importance of: A. Laissez-faire economics B. Supply-side policies C. Aggregate demand and government intervention D. Comparative advantage
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