Classical or Keynesian? Put a âCâ for Classical or a âKâ for Keynesian in the space provided.
_____A. Believed the total money supply in an economy was fixed and controlled by the central bank. _____B. Believed in fiscal policy as a tool to manipulate the performance of the economy.
_____C. Stressed the self-adjusting tendencies of the economy.
_____D. Believed in the flexibility of wages and prices.
_____E. Believed the aggregate supply curve for output was completely fixed.
_____F. Believed output was solely determined by supply factors.
_____G. Viewed the economy as unstable as a result of the instability of aggregate demand.
_____H. Believed that if economy was left alone to operate full employment would be reached.
_____I. Would argue for wage-price controls as a governmental policy for manipulating the economy. _____J. Believed governmental policy could bring about equilibrium in the money and output markets. _____K. Believed money wages would adjust quickly to equate supply and demand.
_____L. Believed consumer and laborer has complete knowledge on real price levels and can make rational decisions.
_____M. Believed supply factors more important controlling factors in the economy than demand factors. _____N. Believed that âin the long-run we are all dead!â
_____O. Aggregate demand affects output and employment.
_____ P. Believed that workers know the price level , the money wage, and therefore know the real wage. _____Q. Believed that interest rates would adjust to keep shocks from affecting aggregate demand. _____R. Believed that changes in desired business investment expenditures were one of the major factors responsible for changes in income.
_____S. Believed that consumption was dependent on the level of income plotted graphically on a consumption function.
_____T. Stressed business expectations as a factor in determining the level of investment.
Classical or Keynesian? Put a âCâ for Classical or a âKâ for Keynesian in the space provided.
_____A. Believed the total money supply in an economy was fixed and controlled by the central bank. _____B. Believed in fiscal policy as a tool to manipulate the performance of the economy.
_____C. Stressed the self-adjusting tendencies of the economy.
_____D. Believed in the flexibility of wages and prices.
_____E. Believed the aggregate supply curve for output was completely fixed.
_____F. Believed output was solely determined by supply factors.
_____G. Viewed the economy as unstable as a result of the instability of aggregate demand.
_____H. Believed that if economy was left alone to operate full employment would be reached.
_____I. Would argue for wage-price controls as a governmental policy for manipulating the economy. _____J. Believed governmental policy could bring about equilibrium in the money and output markets. _____K. Believed money wages would adjust quickly to equate supply and demand.
_____L. Believed consumer and laborer has complete knowledge on real price levels and can make rational decisions.
_____M. Believed supply factors more important controlling factors in the economy than demand factors. _____N. Believed that âin the long-run we are all dead!â
_____O. Aggregate demand affects output and employment.
_____ P. Believed that workers know the price level , the money wage, and therefore know the real wage. _____Q. Believed that interest rates would adjust to keep shocks from affecting aggregate demand. _____R. Believed that changes in desired business investment expenditures were one of the major factors responsible for changes in income.
_____S. Believed that consumption was dependent on the level of income plotted graphically on a consumption function.
_____T. Stressed business expectations as a factor in determining the level of investment.
