The Key Difference Between Keynesian and Classical Economists Is

question 44

Multiple Choice

The key difference between Keynesian and Classical economists is

• A) Keynesians favour a role for government in managing the economy.
• B) Classical economists favour a role for government in managing the economy.
• C) Keynesians believe wages and prices are perfectly flexible.
• D) Classical economists propose a "menu cost" model.
• E) Keynesians believe that monetary and fiscal policies are detrimental to the economy.

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Definitions:

Factor Analysis

A statistical technique based on correlations between several measures, which may be explained in terms of underlying factors.

Analyze Group Means

Involves statistical evaluations of average values (means) obtained from different groups in an experimental study, to infer differences or similarities.

Variables

Elements, factors, or conditions that can change or vary, often considered in research or experiments to observe effects on outcomes.

Structure

The arrangement of and relations between the parts or elements of something complex, forming a coherent whole.