Author Question: Keynesians: a. accept the countercyclical policy of doing nothing, that is, allowing market forces ... (Read 51 times)

fbq8i · **on:** Jun 30, 2018

Keynesians:
a. accept the countercyclical policy of doing nothing, that is, allowing market forces to work.
b. believe that the level of aggregate demand in the 1930s was sufficient to generate full employment.
c. accept the fact that policymakers should eliminate inflation first before focusing on unemployment.
d. focus on increasing aggregate demand in order to stimulate the economy.
e. were prepared for the events that beset our economy in the 1970s and 1980s.

Question 2

If nation A has an absolute advantage over nation B in the production of a product, this implies that:
a. it requires fewer resources in A to produce the good than in B.
b. the cost of producing the good in terms of some other good's production that must be sacrificed is lower in A than in B.
c. nation B could not benefit by engaging in trade with A.
d. nation A should acquire this product by trading with B.
e. nation A could not benefit by engaging in trade with B.