According to the Keynesian view of the macro economy, which of the following is always true at equilibrium?
A. Aggregate supply equals aggregate demand.
B. The price level is too low.
C. The economy is at full employment.
D. The price level is stable.
Answer: A
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A change in the income of buyers will normally change demand.
Answer the following statement true (T) or false (F)
The monetary base increased by 20% during the contraction of 1929-1933, but the money supply fell by 25%. Explain why this occurred. How can the money supply fall when the base increases?
What will be an ideal response?
Which of the following statements is a public choice economist most likely to agree with?
A) People who work for the federal government are naturally lazy, whereas people who work for private firms are naturally hard working. B) Good government comes from good people, bad government comes from bad people. C) Change the institutional arrangements, and you will change behavior. D) Bad people naturally gravitate toward a career in politics. E) Good people naturally gravitate toward a career in politics.
Which of the following is likely to shift the demand curve for carpenters leftward, assuming all else equal?
A) A fall in the wage rate of carpenters B) A fall in the price of the tools used by carpenters C) A rise in the wage rate of carpenters D) A rise in the price of the tools used by carpenters