Author Question: Which of the following statements is (are) incorrect? a. Consumption plays a central role in the ... (Read 89 times)

DyllonKazuo · **on:** Jun 30, 2018

Which of the following statements is (are) incorrect?

a. Consumption plays a central role in the Keynesian theory of income determination
b. Consumer expenditure is the largest component of aggregate demand
c. In recent years, consumption has totaled between 60 and 70 percent of GDP
d. Keynes believed that investment was largely determined by expectations
e. all of the above are correct

Question 2

The classical model is a model in which

a. governmental policies are needed to ensure full employment.
b. wages and prices are perfectly flexible.
c. the public has perfect information.
d. None of the above
e. b and c