The Keynesian Approach to Macroeconomics Assumes That

question 24

Multiple Choice

The Keynesian approach to macroeconomics assumes that

• A)wages,but not prices,adjust quickly to balance quantities supplied and demanded in markets.
• B)wages and prices adjust quickly to balance quantities supplied and demanded in markets.
• C)prices,but not wages,adjust quickly to balance quantities supplied and demanded in markets.
• D)neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.

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Definitions:

Police Power

The inherent authority of a government to impose restrictions on private rights for the sake of public welfare, order, and security.

Jurisdiction

The official power to make legal decisions and judgments, often within a defined area of responsibility or over certain types of legal cases.

Citizenry

The collective group of citizens or inhabitants of a particular jurisdiction, often referred to in context of their rights, duties, and participation in civic life.

Dormant Commerce Clause

A legal doctrine that prohibits states from enacting legislation that discriminates against or excessively burdens interstate commerce.