According to Keynes, market economies:
A. quickly recover after they experience a significant decline in aggregate demand.
B. are constantly experiencing a significant declines in aggregate demand.
C. never experience significant declines in aggregate demand.
D. may recover slowly after they experience a significant decline in aggregate demand.
Answer: D
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When building a model, an economist must:
A. adjust for exceptional situations. B. provide a complete description of reality. C. make simplifying assumptions. D. develop a set of behavioral equations.
The concentration ratio for an oligopoly is considered
A. Under 40 percent. B. Over 60 percent. C. 100 percent. D. 90 percent.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Suppose Country B's population of workers increased to 600. We can say:
A. Country B has no need to trade now. B. Country B now possesses the absolute advantage in the production of both goods. C. Country B now has the comparative advantage in iPod production. D. Country B now possesses the absolute advantage in tablets only.
If real GDP falls, then so must nominal GDP.
Answer the following statement true (T) or false (F)