Keynes believed equilibrium income was:

A. not fixed at the economy's potential income.
B. always below the economy's potential income.
C. fixed at the economy's potential income.
D. always above the economy's potential income.


Answer: A

Economics

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In economic terms, tariffs are preferred to quotas because

A) domestic manufacturers gain more producer surplus. B) there is less loss of consumer surplus. C) tariffs are easier to administer. D) quotas create a greater production inefficiency. E) given the way quotas are usually administered, tariffs cause a smaller net national welfare loss.

Economics

Everything else held constant, if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent, then the expected return of holding RST stock ________ relative to XYZ stock and

demand for XYZ stock ________. A) rises; rises B) rises; falls C) falls; rises D) falls; falls

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If the MPC is .5, the multiplier is

A. .5. B. 1. C. 2. D. 4.

Economics

Indifference curves cannot ever be concave for two goods

Indicate whether the statement is true or false

Economics