Which of the Following Statements About the Keynesian View of the Macroeconomy

question 130

Multiple Choice

Which of the following statements about the Keynesian view of the macroeconomy is incorrect?

• A)Technological change is the most significant influence on both aggregate demand and aggregate supply.
• B)To achieve and maintain full employment, active help from fiscal policy and monetary policy is required.
• C)Expectations are based on "animal spirits."
• D)The money wage rate is extremely sticky in the downward direction so there is no automatic mechanism for eliminating a recessionary gap.
• E)Expectations are the most significant influence on aggregate demand.

Examine the role of integrity, trust, and screening mechanisms in economic and political interactions.

Understand the mechanics and implications of pairwise voting and the Borda count in decision-making processes.

Identify the consequences of information asymmetry in markets, including moral hazard and adverse selection.

Recognize the role of governmental and individual actions in addressing market failures due to information problems.

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Definitions:

Subsidiaries

Companies that are fully or partly owned and partly or wholly controlled by another company, known as the parent company.

Investor

An individual or organization that allocates capital with the expectation of receiving financial returns, often through the purchase of securities, real estate, or other investment assets.

Investee

The entity in which an investor holds an interest, often evidenced through ownership of securities or equity.

Voting Common Stock

A class of stock that grants the holder the right to vote on corporate matters at shareholders' meetings.