Author Question: Adam Smith believed that a nation would produce the maximum wealth by relying on government to make ... (Read 110 times)

stephzh · **on:** Jun 30, 2018

Adam Smith believed that a nation would produce the maximum wealth by relying on government to make public interest economic decisions.
a. True
b. False
Indicate whether the statement is true or false

Question 2

If the economy experiences a recessionary gap then:
a. aggregate expenditures exceed the level of spending necessary to provide for full employment.
b. Keynesian economics would recommend a reduction in government spending or an increase in taxes.
c. Keynesian economics would recommend an increase in government spending or a decrease in taxes.
d. the equilibrium level of output and income is above full employment.