A. stagflation in the late 1970s
B. demand-pull inflation in the 1960s
C. low growth rates in the 1950s
D. The prolonged existence of high unemployment during the Great depression
Related Mcqs:
- Keynesian economics is an economic theory of British economist John Maynard. What this theory states ?
A. A free market is necessary for economic growth and stability
B. Regulation is necessary for economic growth and stability
C. Active government intervention is necessary to ensure economic growth and stability
D. Government intervention is not necessary to ensure economic growth and stability - Which economics doctrine opposes government regulation or interference in commerce beyond the minimum necessary for a free enterprise system to operate according to its own economics laws and non-interference in affairs of others ?
A. Free market economy
B. Laissez faire also Laisser faire
C. Open market economy
D. Liberal market economy - According to the simple Keynesian view the aggregate supply curve is ?
A. downward sloping over all levels of output
B. upward sloping over all levels of output
C. horizontal until it reaches full capacity and then becomes vertical
D. vertical until it reaches full capacity and then becomes horizontal - If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
A. 0.8
B. 800
C. 810
D. 0.81 - If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the average propensity to consume is what ?
A. 0.8
B. 800
C. 810
D. 0.81 - If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?
A. 0.8
B. 800
C. 810
D. 0.81 - The Keynesian remedy for unemployment is to ?
A. decrease aggregate demand
B. reduce tax rates or lower interest rates
C. decrease government spending
D. decrease private consumption and investment - The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
A. long run, short run
B. flexible imperfect markets
C. short-term long run
D. long run, imperfect markets - New classical theories were an attempt to explain ?
A. how unemployment could have persisted for so long during the Great Depression
B. The increase in the growth rate of real output in the 1950s
C. the stagflation of the 1970s
D. Why policy changes that are perceived as permanent have more of an impact on a person’s behaviour than policy changes that are viewed as temporary. - Carmen Reinhart and Kenneth Rogoff explain the paradox of capital flows from poor to rich countries by ?
A. the brain drains from LDCs to DCs
B. the price role of political and credit-market risk in many LDCs
C. the law of increasing returns that implies that the marginal productivity of capital is higher in LDCs
D. the fat that the DC capital market is perfectly competitive
