Chapter 27, Problem 6QFR

To determine

(a)

To explain:

Whether price flexibility as a statement is of Keynesian view, classical view or not both.

To determine

(b)

To explain:

Whether focus being on aggregate supply as a statement is of Keynesian view, classical view or not both.

To determine

(c)

To explain:

Whether spending made as the key factor of the output as a statement is of Keynesian view, classical view or not both.

To determine

(d)

To explain:

Whether capital being key source for growth in an economy as a statement is of Keynesian view, classical view or not both.

To determine

(e)

To explain:

Whether saving unfavorable to economy as a statement is of Keynesian view, classical view or not both.

To determine

(f)

To explain:

The macroeconomy takes care of itselfas a statement is of Keynesian view, classical view or not both.

To determine

(g)

To explain:

The borrowing of a dollar requires saving of a dollar as a statement is of Keynesian view, classical view or not both.

To determine

h.

To explain:

Whether macroeconomy being inherently unstable as a statement is of Keynesian view, classical view or not both.

To determine

i.

To explain:

Whether the full employment being at the natural unemployment rate as a statement is of Keynesian view, classical view or not both.

To determine

j.

To explain:

The prices that do not adjust downward as a statement is of Keynesian view, classical view or not both.