Author Question: Which of these is a central argument of Keynes's General Theory? a. Competition does not allocate ... (Read 17 times)

future617RT · **on:** Jun 30, 2018

Which of these is a central argument of Keynes's General Theory?
a. Competition does not allocate resources efficiently in a modern industrial economy.
b. Full employment can be maintained even during a major recession if wage rates are lowered far enough.
c. Modern industrial economies do not tend automatically toward full employment rates of output.
d. Money does not play an important role in either causing or curing recession.
e. Government can best stabilize the economy by letting the market system automatically adjust toward full employment.

Question 2

Oligopolies have few sellers and difficult entry.
a. True
b. False
Indicate whether the statement is true or false