18. Laissez-faire economists oppose government intervention in the market proces

Question

18. Laissez-faire economists oppose government intervention in the market process.

19. Active demand management policies are based on the work of John Maynard Keynes.

20. In the AS/AD model, as the price level raises, the real value of assets increases, causing consumption to increase. This is one reason why the aggregate demand curve slopes down.

21. The short-run aggregate supply curve is upward sloping in part because increases in aggregate demand cause some firms to increase their price markups.

22. If productivity and wages both raises by 3 percent, then the short-run aggregate supply curve does not shift.

23. The long-run aggregate supply curve is vertical because all prices adjust in the long run.

24. If the economy is not in a long-run equilibrium and other things are equal, then prices will eventually adjust to bring the economy to a long-run equilibrium.

25. Most economists agree that it is possible for fiscal policy to fine-tune the economy.

Explanation / Answer

18. T 19. T 20. T 21. T 22. T 23. T 24. T 25. T

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.