Question

27. The Hicks version of the IS/LM that has been presented has been referee to a. the definitive Keynesian model b. the bastardized Keynesian model c. unrealistically simplified d. irrelevant to the structure of modern economies as, 28. One advantage of monetary policy is a. crowding out b. centralized power of moneyed interests c. monopoly of the money supply d. immediate and precise 29. Keynes' famous statement that "in the long run we are all dead" expresses which of the following sentiments a. return to the long run takes longer than a generation b. the long run is as utopian as Armageddon is dystopian c. society would demand revolution rather than suffer adjustment to long run equilibrium d. Keynes felt he was getting too old and sickly to see the long run arrive

Answer 1

27. The definite keynesian model

Reason: The Hicks - Hansen IS-LM model has been developed post the keynesian model and post Keynes published his book 'The General theory of employment, interest and money'.

28. Monopoly of money supply

Reason: Monopoly of money supply in the hands of the Fed gives an edge to implementation of monetary policy on time with accuracy

29. Return to the long run takes longer than a generation

Reason: A long run time period lasts more than a generation and thus no one has lived to see an entire long run duration of an economy