According to the Keynesian analysis, the point of equilibrium income
a. must recede as output increases.
b. must be a point at less-than-full employment.
c. must correspond to the full-employment level.
d. can be anywhere along the 45-degree line.
d. can be anywhere along the 45-degree line.
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Which of the following is true of a used-car market?
A) Sellers have more information than the buyers. B) Gains from trade do not exist in this market. C) The cars sold are identical in quality. D) There is no consumer surplus in this market.
When the benefits of producing a good or service spill over to other people, rather than just the buyer, the spillover is referred to as
A) an external benefit. B) an external cost. C) a marginal cost. D) an equilibrium social output. E) a Coasian good.
The demand for money curve
A) shows the relationship between money demanded and open market operations. B) shows the relationship between the quantity of money balances demanded and the interest rate. C) is positively related to the interest rate. D) varies inversely with the supply of money.
Actions by the Second Bank of the United States:
a. reduced the discount rate on state bank notes. b. increased the discount rate on state bank notes. c. created inflation. d. effectively ended the use of state bank notes.