According to Keynes, in order to get the economy out of a recession, the government should:
a. follow an expansionary fiscal policy
b. encourage firms to export to other nations.
c. follow an contractionary fiscal policy.
d. follow a contractionary monetary policy.
e. not interfere in the market and let the market system heal itself.
a
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One requirement for an industry to be perfectly competitive is that
A) there are no restrictions on entry into or exit from the market. B) there are multiple restrictions on entry into or exit from the market. C) there are many firms selling different products. D) sellers and buyers have imperfect information about prices. E) the many firms sell slightly different products.
A reduction in the inflation rate would make relative prices
a. less variable, making it more likely that resources will be allocated to their best use. b. less variable, making it less likely that resources will be allocated to their best use. c. more variable, making it more likely that resources will be allocated to their best use. d. more variable, making it less likely that resources will be allocated to their best use.