Which of the following statements are correct? i. In the Keynesian model there will always be an automatic tendency towards full employment if the economy is operating at a level of production orincome below full-employment. ii. Macroeconomic theory deals with events that occurred in the past. iii. Consumption spending can exceed income.A. i, ii and iiiO B. iiC. i and iiD. iii

The keynesian economists argue that government intervention in economic activities is necessary to…

Which of the following statements are correct? i. In the Keynesian model there will always be an automatic tendency towards full employment if the economy is operating at a level of production or ncome below full-employment. ii. Macroeconomic theory deals with events that occurred in the past. iii. Consumption spending can exceed income. O A. i,ii and iii O B. ii O C. i and ii ⒸD. iii

Which of the following statements are correct? i. In the Keynesian model there will always be an automatic tendency towards full employment if the economy is operating at a level of production or ncome below full-employment. ii. Macroeconomic theory deals with events that occurred in the past. iii. Consumption spending can exceed income. O A. i,ii and iii O B. ii O C. i and ii ⒸD. iii

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 2CQQ

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