Classify the following examples based on whether they were ideas proposed by the Keynesian theory or by financial and monetary theories. Assume that there exists a downward wage rigidity. a. Firm X expects a rise in the demand for their output in the? future; they will increase their employment now.
b. A stock market rise in country B leads to an increase in consumer? confidence, employment, and production. These events reinforce themselves and the virtuous cycle continues.
c. An expansionary monetary policy increases the money supply in country? A, which in turn leads to a fall in the unemployment and a rise in real GDP.
d. Three major national banks of country Y? fail, which ultimately leads to a fall in the? country's real GDP and employment.
e. Country Z is in a recession. It will remain in this state until the government stimulates aggregate demand.