Traditional Keynesian economics assumes that prices are relatively flexible in response to changes in aggregate expenditures
a. True
b. False
Indicate whether the statement is true or false
False
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What would happen to the optimal amount of pollution if studies found dangerous effects of SO2 cause cancer and the government takes away subsidies to companies for cleaning up their pollution?
A. Uncertain B. Increase C. Stay the same D. Decrease
When spending is less than production, inventories are higher than what producers expected.
Answer the following statement true (T) or false (F)
Assume a marginal propensity to consume of three-fourths. If private planned investment decreases by $10 billion and government spending increases by $13 billion, the national income will increase by
a. $4 billion. b. $12 billion. c. $3 billion. d. $2.25 billion.
In the expansion phase of the business cycle a. output is rising
b. unemployment is falling. c. consumer and business confidence is high. d. all of the above are true.