Keynesian Economics Include All of the Following EXCEPT

question 4

Multiple Choice

Keynesian economics include all of the following EXCEPT:

• A) by not being able to adjust to varying levels of demand and supply, markets are rarely efficient in organizing economic activity.
• B) general non-intervention by government, that is, "laissez faire" (allow to do).
• C) regular government intervention to assure stability and growth in the economy.
• D) if government intervention is necessary, it should be with the goal of increasing economic activity, mainly by the government spending money it does not have.
• E) money is important as a medium of exchange, but printing excess money will not lead to inflation, at least in the short run.

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Definitions:

Federal Trade Commission

A U.S. federal agency responsible for enforcing laws against deceptive or unfair business practices.

Antitrust Conviction

A legal judgment against a company or individual for violating laws intended to prevent anti-competitive behaviour and promote fair market competition.

Monopoly Power

The ability of a single supplier in a market to dictate prices and control output, usually due to the lack of competition.

Sherman Act

A landmark federal statute in the United States antitrust law passed by Congress in 1890 to prohibit monopolies and foster competition.