Keynesian policy:
A. refers to policies that actively shift aggregate demand in an effort to reach full employment.
B. refers to fiscal policy.
C. promotes spending more and taxing less to boost economic activity to potential GDP.
D. All of these are true.
D. All of these are true.
You might also like to view...
Which of the following statements is true?
A) An increase in potential GDP increases aggregate supply and shifts the AS curve leftward. B) A decrease in potential GDP decreases aggregate supply and shifts the AS curve leftward. C) An increase in the money wage rate shifts the AS curve rightward. D) A fall in the price level shifts the AS curve leftward. E) An increase in the money wage rate increases potential GDP.
In monopolistic competition, a firm must determine what price to set for its good because
A) the demand for its good is not perfectly elastic. B) the demand for its good is perfectly elastic. C) there are many buyers. D) there are many sellers.
The possibility that a borrower will break a promise made to the lender after the loan is made is one form of
A) the moral hazard problem. B) the adverse selection problem. C) outside collateral. D) inside collateral.
Refer to the above table. What is the marginal factor cost when the firm employs the third unit of labor?
A. $62 B. $57 C. $21 D. $25