1) Which of the following statements about Keynes' contribution to

Question :   1) Which of the following statements about Keynes' contribution to : 1940423


1) Which of the following statements about Keynes' contribution to macroeconomics is correct?

A) although he published his most important ideas about the economy long before the 1930s, few economists paid attention to Keynes until the Great Depression proved him correct.

B) Keynes argued that depressions and recessions were almost always caused by changes in the money supply.

C) Keynes argued that balancing the budget could be an effective way to cure a recession or depression.

D) all of the above

E) none of the above

2) According to Keynes,

A) the Great Depression was caused by ill-considered expansionary fiscal policy.

B) balancing the budget in the midst of a depression would be a serious mistake.

C) inflation is always and everywhere a monetary phenomenon.

D) the Phillips curve is stable.

E) none of the above

3) The neoclassical synthesis

A) was a name coined by Keynes himself for his new theories.

B) rejected virtually all of Keynes' insights.

C) held that econometric models of the economy could not be used to predict the future.

D) held that economy always operated at or very near the natural rate of unemployment.

E) was the dominant school of thought among economists in the 1950s and 1960s.

4) Liquidity preference refers to

A) Keynes' name for the demand for money.

B) the "random walk" behavior of consumption spending.

C) monetarists explanations for stagflation.

D) real business cycle theorists' explanations for stagflation.

E) the controversy sparked by the Lucas critique.

5) Which of the following was not part of the neoclassical synthesis?

A) the IS curve

B) the LM curve

C) the Phillips curve

D) aggregate demand

E) rational expectations

6) Which of the following schools of thought advised against fine-tuning, due to our limited understanding of the economy?

A) Monetarist

B) Keynesian

C) New Keynesianism

D) New growth

E) Neoclassical

7) "In the long run, we're all dead" was Keynes' way of saying that

A) intellectual pursuits, like understanding the economy, are unimportant in the scheme of things.

B) no one would appreciate his theories during his lifetime.

C) there is no point in saving for retirement.

D) it is very important to save for one's retirement.

E) none of the above

8) The intellectual leader of the monetarists was

A) Robert Lucas.

B) Milton Friedman.

C) John Maynard Keynes.

D) Paul Romer.

E) John Taylor.

9) In the 1960s, the monetarist school of thought held that

A) monetary and fiscal policy could explain most of the output fluctuations in U.S. history.

B) there is a long-run tradeoff between inflation and unemployment.

C) efforts to fine-tune the economy are likely to do more harm than good.

D) all of the above

E) none of the above

10) If the IS curve is relatively steep, then

A) there can be no long-run tradeoff between inflation and unemployment.

B) monetary policy cannot be very effective in changing GDP.

C) rational expectations theory is probably correct.

D) Ricardian equivalence most likely holds.

E) budget deficits will not affect future capital accumulation.

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