Keynes believed that the economy could stay in period of unemployment for a long time period without self-correcting
a. True
b. False
Indicate whether the statement is true or false
True
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Along the 45° reference line
A) the average propensity to consume is represented. B) planned real expenditures equal real disposable income. C) consumption expenditures equal saving. D) the relationship between consumption and income is represented.
In 2008, the nominal minimum wage rate was $7.25 an hour and the CPI was 200. The real minimum wage rate in 2008 was
A) $3.63 an hour. B) $14.50 an hour. C) $1450 an hour. D) $26.32 an hour. E) $7.25 an hour.
Suppose a market basket of goods and services costs $400 in the base year and the consumer price index (CPI) is currently 125 . This indicates the price of the market basket of goods is now:
a. $275. b. $425. c. $500. d. $525.
An argument is sometimes made that moderate inflation may help the economy by making which of the following more flexible?
a. interest rates b. wages in labor markets c. surpluses d. shortages