Among the groundbreaking contributions to economics made by John Maynard Keynes is
A) the insight that recessions can result from a lack of aggregate demand.
B) the development of the spending multiplier.
C) the theory of sticky wages and prices.
D) all of the above
D
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In the above figure, assume the aggregate demand of the economy is AD2 and the Fed actions move aggregate demand to AD1. In this situation, the Fed has practiced
A) contractionary monetary policy. B) expansionary monetary policy. C) irresponsible fiscal policy. D) Keynesian fiscal policy.
Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the higher cost will
A) have a lower price for its product than its competitor. B) have a smaller profit than its competitor. C) have a higher price for its product than its competitor. D) have a higher profit than its competitor.