Keynes emphasized the idea that wages and prices adjusted very rapidly bringing an economy back to the full employment level of output
a. True
b. False
Indicate whether the statement is true or false
False
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The dummy variable trap is an example of
A) imperfect multicollinearity B) something that is of theoretical interest only C) perfect multicollinearity D) something that does not happen to university or college students
In a market economy, the decisions about what to produce and how much of each good or service to produce are made by
a. government officials. b. economic planners. c. central bankers. d. consumers and producers.
A raise in the price of a product causes _____.
(A) A decrease in supply. (B) An increase in demand. (C) A decrease in competition. (D) An increase in competition.
Which of the following statements is true?
A. The four phases of the business cycle, in order, are: peak, recovery, trough, recession. B. When unemployment is rising then real GDP is rising. C. The economic problem typically associated with a recovery is rising unemployment. D. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.