Unlike the classical economists, Keynes asserted that

If wages and prices are flexible, then a recession is best eliminated when prices

Which of the following is true about business cycles in the United States?

According to Keynes, which of the following should the government do when the economy overheats?

Fiscal policy involves changes in government spending and taxes, but not regulation of prices or production.

For the convenience of analyzing the part of the deficit that is sensitive to fiscal policy, the actual deficit is divided into which of the following components?

Both Keynesian and monetarist theories emphasize the potential of aggregate demand shifts to alter macro outcomes.

Which of the following statements is not true about the consumption function?

A horizontal aggregate supply curve below the level of full employment is most consistent with which of the following views of the economy?

Ceteris paribus, if the AD shortfall equals $600 billion, then the federal government can close it by increasing