ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
In 1936, John Maynard Keynes published a book, The General Theory, which attempted to explain
a. |
short-run economic fluctuations.
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b. |
stagflation.
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c. |
how changes in the money supply had created the Great Depression.
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d. |
the classical dichotomy.
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- Question 5. What is the name of Keynesian book published in 1936?arrow_forwardA friend of yours expresses the opinion that the only resource that is important in the macroeconomy is money. He says, “The more money an economy has, the richer it is.” How would you respond?arrow_forwardThe idea that higher prices reduce the purchasing power of financial assets and lead to less consumption and more saving is known as the A. Foreign purchases effect. B. Income effect. C. Aggregate demand effect. D. Real balances effect.arrow_forward
- Please answer question 2arrow_forwardSelect all that apply to a Keynesian Economist: A. Assumes flexible demand for output B. Savings depends on income C. Investment depends on profit expectations D. Wages sticky E. Fix in Short Runarrow_forwardWhy do economists think the classical dichotomy holds in the long run?arrow_forward
- Can you please help me?arrow_forwardControlling the quantity of money and interest rates to influence aggregate economic activity is called *a. monetary policy.b. foreign policyc. bank antitrust policy.d. fiscal policy.arrow_forwardAccording to Keynesian economists, if people in the economy are not spending enough then the __________ should step in to fill the gap. a federal reserve b markets c federal government d banksarrow_forward
- Which of the following events could cause stagflation? a. The Federal Reserve increases interest rates. b. Government spending on infrastructure increases. c. Steel and other raw materials increase in price. d. Wages fall due to increased foreign competition.arrow_forwardIn the basic New Keynesian model, suppose that there is an increase in the future marginal product of capital. Assume that the central bank has a quadratic loss function. a. If the central bank does nothing, then current inflation will and current output will decrease. increase. not change.arrow_forwardParts A-D. I don't need it drawn out, just explained to me so I can go further with the graph.arrow_forward
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