Keynesians view the economy as unstable as a result of the instability of aggregate demand. Which component of aggregate demand is primarily responsible?
a. Net export
b. expectations
c. Consumption
d. Private investment
e. both b and d.
E
You might also like to view...
Roughly speaking, the estimated return to a year of education in the United States is roughly
A. 3% B. 0% C. 20% D. 9% E. 50%
Firms will invest in new equipment whenever:
A. the expected cost of the equipment is less than the expected benefit. B. the expected cost of the equipment exceeds the expected benefit. C. public saving is greater than private saving. D. the expected cost of the equipment is greater than the value of the marginal product of the equipment.
A profit-maximizing firm will always operate at that output at which _______ is equal to ________.
Fill in the blank(s) with the appropriate word(s).
Which of the following would not be a government transfer expenditure?
A. contribution of employers to support the Social Security program B. social security payments to the aged C. unemployment compensation benefits D. payments to the widows of war veterans