Which of the Following Schools of Thought Believes That the Major

question 14

Multiple Choice

Which of the following schools of thought believes that the major source of the macroeconomic problems are the disequilibria in the private labor and goods market?

• A) Keynesians and new Keynesians
• B) Only monetarists
• C) Only new classical economists
• D) Monetarists and new classical economists
• E) Monetarists and Keynesians

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Definitions:

Risk-Loving Individuals

Persons who prefer outcomes with more risk for the chance of higher rewards, as opposed to safer options.

Lloyd's Of London

A UK-based marketplace for insurance and reinsurance where participants form syndicates to jointly insure and distribute risk.

Merchant Ships

Commercial vessels used in international trade to transport goods and sometimes passengers.

Risk Aversion

The tendency of individuals to prefer outcomes with lower uncertainty over outcomes with higher uncertainty, even if the latter may offer a higher expected return.