Keynesian economists believed that the prolonged unemployment of the 1930s was the result of
What will be an ideal response?
insufficient aggregate demand and the failure of market forces to direct the economy back to full employment.
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Only a market economy must answer the questions of what goods to produce, how to produce them, and for whom to produce them.
Answer the following statement true (T) or false (F)
________ increases the size of the money multiplier
A) An open market sale of government securities by the Fed B) An increase in the currency drain ratio C) A reduction in the desired reserve ratio D) An open market purchase of government securities by the Fed E) An increase in the size of open market operations
If the university administration plans to hike tuition charges in the hope of increasing tuition revenues, we know
A) they are assuming an elastic demand. B) they are assuming an inelastic demand. C) they cannot succeed because of the law of demand. D) they must be running in the red. E) they will only succeed if more students can be enrolled at no cost.
Exhibit 8-12 Marginal revenue and cost per unit curves
As shown in Exhibit 8-12, the price that will yield zero economic profit is:
A. OA. B. OB. C. OC. D. OD.