Answer:
Explanation:
Keynesian Economics focuses on using active government policy to manage aggregate demand in order to address or prevent economic recessions.
Keynes developed his theories in response to the Great Depression, and was highly critical of classical economic arguments that natural economic forces and incentives would be sufficient to help the economy recover.
Activist fiscal and monetary policy are the primary tools recommended by Keynesian economists to manage the economy and fight unemployment.
Answer:
A: The supply of loanable funds curve
B: left
C: Increase
Explanation:
If the tax rate on interest earned on savings deposits rises to 25% then the <u><em>supply of loanable funds curve</em></u> will shift to the <u><em>left </em></u>causing the equilibrium interest rate to <u><em>slide upwards (or increase). </em></u>
The supply curve for loanable funds slopes upwards from left to right. This means that when interest rates are high, lenders are more willing to lend more funds to investors and businesses. The intersection of the demand and supply curves for loanable funds creates the equilibrium interest rate.
Cheers!
Answer:
a) True
Explanation:
We can not determine the exact percentage by which a 6% reduction in inflation will cause a hike in unemployment but this conclusion is true. As per the Philips Curve, inflation and unemployment are in an inverse relationship
This is to say an increase in one will cause a decrease in the other and vice versa. This relationship however is not linear and so the degree of changes one variable causes in another will depend on the economy and statistics of the economy.
Hope that helps.
D. you limited yourself to a small number of products
is your best choice
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