Which one of the following is not a position taken by Keynesian economists?
a. Because people anticipate the consequences of government policy, the policy becomes ineffectual
b. Changes in demand for goods affect production levels.
c. To reduce unemployment, government should increase aggregate demand.
d. Prices are inflexible downward.
e. The economy can be in equilibrium with persisting unemployment.
A
You might also like to view...
Is there evidence that an increase in per capita income stimulates population growth?
What will be an ideal response?
In the long-run ISLM model and with everything else held constant, the long-run effect of a tax cut is to ________ real output and ________ the interest rate
A) increase; increase B) increase; not change C) not change; increase D) not change; decrease
The deadline for your research paper is tomorrow and you still need a day of work to complete the paper. Unfortunately, you are scheduled to work all day in the cafeteria. You can turn the paper in one day late for a 10 percent penalty or take the day off of work and turn the paper in by the deadline. Losing a day of wages will cost you $90. The marginal cost of turning the paper in on time is:
A. 10 percent deducted from your final score. B. $90 in forgone wages. C. not getting to lounge around all day. D. the 10% deduction in score and $90 in forgone wages.
The employment/population ratio identifies the proportion of the population age 16 and over that is
a. either looking for work or on layoff waiting to be rehired. b. employed. c. in the labor force. d. unemployed.