One major difference between Keynesian analysis and classical theory is that the classical theory assumes
a. a market economy.
b. an agricultural economy.
c. full employment as a norm.
d. a constant money supply.
c. full employment as a norm.
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Because technology has automated so many functions, personal services have become cheaper in order to compete.
Answer the following statement true (T) or false (F)
Today farms with sales of more than $250,000 a year account for about _____ percent of all agriculture sales.
A. 5 B. 25 C. 50 D. 75
Theories or models of economic behavior are used to
a. explain very precise details about the economy b. predict economic events and develop economic policy c. predict consumer behavior but not market behavior d. all of the above
Assuming an decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant. b. conduct an open market sale of bonds. c. reduce the required ratio. d. both b and c. e. None of the above