1. The “Schools of Thought” handout shows
a. Keynesian macroeconomics is correct.
b. non-Keynesian ways of thinking about macroeconomics.
c. that laissez-faire should always be used except during times of war.
d. all of the above.
2. As long as marginal cost is below marginal revenue, a perfectly competitive firm should
A. Increase production
B. Decrease production
C. Reconsider past production decisions
D. Hold production constant