Podcast
Questions and Answers
What is the primary factor that determines household savings and investments according to Keynesian economists?
What is the primary factor that determines household savings and investments according to Keynesian economists?
- Prevailing interest rates
- Expected profitability of commercial capital investments
- Disposable incomes and the desire to save for the future (correct)
- Government fiscal policies
What is the term used to describe the state of the economy where there is a gap between the actual and potential levels of output?
What is the term used to describe the state of the economy where there is a gap between the actual and potential levels of output?
- Aggregate demand equilibrium
- Under-employment equilibrium (correct)
- Full-employment equilibrium
- Monetary policy equilibrium
What is the primary focus of Keynesian economics in terms of time period?
What is the primary focus of Keynesian economics in terms of time period?
- Both long run and short run
- Long run
- Medium run
- Short run (correct)
What is the primary tool used by Keynesian economists to close the gap between the actual and potential levels of output?
What is the primary tool used by Keynesian economists to close the gap between the actual and potential levels of output?
What is the name of the school of macroeconomic thought that asserts that changes in aggregate demand can create gaps between the actual and potential levels of output?
What is the name of the school of macroeconomic thought that asserts that changes in aggregate demand can create gaps between the actual and potential levels of output?
What is the primary reason why Keynesian economists believe that the government can play a role in stabilizing the economy?
What is the primary reason why Keynesian economists believe that the government can play a role in stabilizing the economy?
What is the primary concern of monetarist authorities according to the theory?
What is the primary concern of monetarist authorities according to the theory?
Who is credited with making the first solid empirical case for the monetarist interpretation of business fluctuations?
Who is credited with making the first solid empirical case for the monetarist interpretation of business fluctuations?
What is the monetarist view on the relationship between money supply and inflation?
What is the monetarist view on the relationship between money supply and inflation?
According to New Classical Economists, what happens when markets clear?
According to New Classical Economists, what happens when markets clear?
What is the assumption of New Classical Economists regarding the behavior of agents in the market?
What is the assumption of New Classical Economists regarding the behavior of agents in the market?
What is the implication of the neutrality of money according to New Classical Economists?
What is the implication of the neutrality of money according to New Classical Economists?
What can occur if governments do not announce an increase in the money supply?
What can occur if governments do not announce an increase in the money supply?
Which of the following is NOT a characteristic of New Keynesians?
Which of the following is NOT a characteristic of New Keynesians?
What does the New Keynesian school recommend for governments to do?
What does the New Keynesian school recommend for governments to do?
Which economists are associated with the New Keynesian school?
Which economists are associated with the New Keynesian school?
What do all the schools of economics mentioned have in common?
What do all the schools of economics mentioned have in common?
What is a common goal of the schools of economics mentioned?
What is a common goal of the schools of economics mentioned?
What do Market Clearing Classicists, New Classicists, and Monetarists believe about the market clearing process?
What do Market Clearing Classicists, New Classicists, and Monetarists believe about the market clearing process?
Which school of thought believes that monetary policy is ineffective or worsens the business cycle?
Which school of thought believes that monetary policy is ineffective or worsens the business cycle?
What is a characteristic of the Keynesian and New Keynesian schools of thought?
What is a characteristic of the Keynesian and New Keynesian schools of thought?
What did Colander say about modern economists?
What did Colander say about modern economists?
Which school of thought is currently dominant in academia?
Which school of thought is currently dominant in academia?
What was Jevons' approach towards the classical school?
What was Jevons' approach towards the classical school?
What was Keynes' approach towards the classical and neoclassical schools?
What was Keynes' approach towards the classical and neoclassical schools?
What is the main difference between classical and neoclassical economics in terms of utility?
What is the main difference between classical and neoclassical economics in terms of utility?
What is the focus of the classical school?
What is the focus of the classical school?
Who described economics as a science of human welfare?
Who described economics as a science of human welfare?
What determines equilibrium in classical economics?
What determines equilibrium in classical economics?
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