What are the defining features of Keynesian macroeconomics and what policies do Keynesian macroeconomists recommend?
What will be an ideal response?
Keynesian macroeconomists believe that if the economy was left alone, it would rarely operate at full employment. To achieve and maintain full employment the economy needs active help from fiscal and monetary policy. Aggregate demand fluctuations combined with a very sticky money wage rate are the major sources of the business cycle. Keynesian macroeconomists assert that active fiscal and monetary policy, designed to offset fluctuations in aggregate demand, are the proper government policies.
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Which of the following would be an example of a fixed cost?
A) the electric and gas bills B) wages paid to temporary workers C) property insurance premiums D) expenditures on imported raw materials
Which of the following would show a good that is relatively elastic in supply?
a. ES รท1 b. ES = 1 c. ES ? 1 d. ES < 1