Question

Which one of the following statements best represents the Keynesian Perspective?

Build things so long as the supply is there.

People’s demand determines what is built.

Build it and they will come.

Keynes argued that the private sector was ________. As a result, government should ________ in managing the economy.

unable to keep the economy at full employment; take an active role

able to keep the economy at full employment; take an passive role

unable to keep the economy at full employment; take an passive role

What does a Keynesian analysis of economics assume?

It is aggregate supply that is the primary determinant of economic output..

Macroeconomics must focus on growth in the long-term.

Prices are sticky.

Aggregate demand is influenced by the government in through what significant ways?

raising or lowering export production; decreasing or increasing business confidence

raising or lowering tariffs; decreasing or increasing interest rates

raising or lowering tax rates; decreasing or increasing spending

Answer 1

Answer 2

1.People’s demand determines what is built

According to Keynes the production and supply of demand is in accordance the demand.

2.unable to keep the economy at full employment; take an active role

He argued that only through government policies and spending, full employment can be achieved.

3. Prices are sticky

4.raising or lowering tax rates; decreasing or increasing spending