Asked by Jacek Buczko on May 08, 2024
Verified
Keynesians
A) believe capitalism is inherently stable
B) contend that government intervention in the economy is undesirable
C) advocated a laissez faire policy
D) believe wages and prices are inflexible downward
E) advocate tax cuts to encourage work,savings and investment
Keynesians
A group of economists who advocate for active government intervention in the economy, especially during recessions, to manage demand through fiscal and monetary policies.
Capitalism
An economic system characterized by private or corporate ownership of capital assets and goods, with the production and pricing of goods determined primarily by competition in a free market.
Government Intervention
This involves actions taken by a government to affect the economy beyond the basic regulation of fraud and enforcement of contracts, which can include tariffs, subsidies, and adjustments to interest rates.
- Gain an understanding of Keynesian economics, focusing on his views about recessions and the necessity of governmental involvement.
- Understand the distinctions and likenesses in the perspectives of classical economists, Keynesians, and monetarists regarding the pursuit of economic stability and growth.
Verified Answer
Learning Objectives
- Gain an understanding of Keynesian economics, focusing on his views about recessions and the necessity of governmental involvement.
- Understand the distinctions and likenesses in the perspectives of classical economists, Keynesians, and monetarists regarding the pursuit of economic stability and growth.
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