If the economy is in equilibrium at less than full employment, Keynesian economists would recommend that the government
a. do nothing
b. pursue fiscal policy to stimulate aggregate demand
c. pursue fiscal policy to stimulate aggregate supply
d. balance the budget
e. cut government spending to eliminate deficit spending
B
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The economic problem refers to
A. not having enough money. B. the attempt "to secure the greatest amount of pleasure with the least possible outlay". C. the notion that the wealth of nations depends on that country's ability to produce goods and services. D. None of the choices are true.
If wages do not instantaneously adjust to reflect expected inflation that is based on an anticipated increase in the money supply,
A) the aggregate demand and positively sloped aggregate supply curve shift to the right at the same time. B) the positively sloping aggregate supply curve shifts to the left after the aggregate demand curve shifts to the right. C) the positively sloping aggregate supply curve shifts to the left before the aggregate demand curve shifts to the right. D) the positively sloping aggregate supply curve does not shift to the right at the same time as the aggregate demand curve shifts to the left.
Which of the following is the definition of a capital gain?
a. An increase in a firm's capital stock b. Profit earned from selling a financial asset c. The dividend earned from a company's stock d. Taxes saved by selling a share of corporate stock e. The profit earned by a corporation
According to the above figure for a gasoline market, at a price of $1 per gallon of gasoline, there would be
A. a surplus of 50 million gallons. B. a shortage of 30 million gallons. C. a surplus of 30 million gallons. D. a shortage of 20 million gallons.