The groundbreaking book the general theory of

This preview shows page 13 - 16 out of 68 pages.

The groundbreaking book The General Theory of Employment, Money, and Interestwas written by famed economist: Ronald Reagan. IncorrectJohn Maynard Keynes. (True Answer )CorrectAdam Smith. IncorrectBarack Obama.
Incorrect1081 Keynes believed that wages and prices were sticky. Therefore, a rightward shift of the aggregate demand curve would cause a(n):
According to Keynesian economics, a tax cut will _____ aggregate demand and output by ______.
Incorrect1083 Keynes believed that to end the Great Depression:
Incorrect1084 During the 1940s, 1950s, and 1960s: the role of the government in the economy increased. (True Answer )Correctthe role of the government in the economy decreased. IncorrectKeynes's ideas were challenged by free-market policies. IncorrectKeynes's views were accepted only by left-wing socialist economists.
Incorrect1085 According to a Keynesian economist, a recessionary gap should be fixed with:
discretionary fiscal policy.
Macroeconomic policy activism:
Incorrect1087 According to Keynes, the remedy for a recessionary gap was straightforward. The solution was to: increase aggregate supply. Incorrectincrease aggregate demand. (True Answer )Correctcontrol big business. Incorrectdecrease government involvement.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture