Say\'s Law contradicts Keynesian macroeconomic theory provides the basis for man
ID: 1173243 • Letter: S
Question
Say's Law
contradicts Keynesian macroeconomic theory
provides the basis for many of Keynes' theories
states that demand creates supply
is not relevant to the issue of economic stability
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Interest rates in the classical view
regulate microeconomic behavior but not macroeconomic behavior
are a purely monetary phenomenom (they have no effect on real economic performance)
play a minor role in macroeconomic behavior
regulate macroeconomic behavior in the same way that prices regulate microeconomic behavior
The classical economists believed that money
can have real effects on economic activity due to hoarding
can be created only by the central bank
is needed to provide the ability to buy in market economies
is unnecessary in mature market economies
According the Keynesians business cycles occur because
investment spending is volatile (it changes a lot over time)
consumption spending is volatile (it changes a lot over time)
money velocity is volatile (it changes a lot over time)
government spending is volatile (it changes a lot over time)
Keynesians advocate increasing government spending during recessions
offset the fall in money supply
offset a decline in the marginal propensity to consume
to compensate for consumption satiation that reduces the willingness to buy
to push up interest rates and reduce hoarding
contradicts Keynesian macroeconomic theory
provides the basis for many of Keynes' theories
states that demand creates supply
is not relevant to the issue of economic stability
Say's Law contradicts Keynesian macroeconomic theory provides the basis for many of Keynes' theories states that demand creates supply is not relevant to the issue of economic stability Interest rates in the classical view regulate microeconomic behavior but not macroeconomic behavior are a purely monetary phenomenon (they have no effect on real economic performance) play a minor role in macroeconomic behavior regulate macroeconomic behavior in the same way that prices regulate microeconomic behavior The classical economists believed that money can have real effects on economic activity due to hoarding can be created only by the central bank is needed to provide the ability to buy in market economies is unnecessary in mature market economies According the Keynesians business cycles occur because investment spending is volatile (it changes a lot over time) consumption spending is volatile (it changes a lot over time) money velocity is volatile (it changes a lot oveExplanation / Answer
6 contradicts Keynesian macroeconomic theory
7 are a purely monetary phenomenom (they have no effect on real economic performance)
8 can be created only by the central bank
9 consumption spending is volatile (it changes a lot over time)
10 to compensate for consumption satiation that reduces the willingness to buy