"The Market Is Not a Self-Regulating Mechanism Because Prices Are

question 84

Multiple Choice

"The market is not a self-regulating mechanism because prices are not flexible and nothing ensures that planned leakages will be offset by planned injections.To bring the economy out of depression and end high unemployment, some way of stimulating aggregate demand is required.This can be best achieved by a combination of government deficit spending and regulation of tax rates." Which school of thought does this statement best represent?

• A)Rationalist economics
• B)Monetarist economics
• C)Classical economics
• D)Keynesian economics
• E)Marxist economics

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Definitions:

Capital Owners

Individuals or entities that own assets used in the production of goods and services, such as machinery, buildings, or money.

Cooperatives

Organizations or businesses owned and operated by their members, who share the benefits or profits.

Produced Goods

Items that have been manufactured or processed from raw materials, ready for sale and distribution in the marketplace.

Closed Shop

A form of union security agreement where the employer agrees to hire union members only, and employees must remain members of the union at all times in order to remain employed.