In the Keynesian model, to understand the determination of income and employment it is necessary to understand
A) how aggregate supply is determined.
B) how aggregate demand is determined.
C) how long-run aggregate supply is determined.
D) how interest rates are determined.
B
You might also like to view...
An increase in the money supply is likely to reduce
A. interest rates. B. nominal income. C. the general price level. D. money demand.
If a passive approach is followed in closing an expansionary gap, _____
a. restrictive fiscal policy would be used b. restrictive monetary policy would be used c. the short-run aggregate supply curve would shift to the right d. the price level would decrease in the long run e. an economy would experience inflationary pressure
When we speak of expansionary fiscal policy, we are talking about policymakers __________ government spending, or __________ taxes, or both
A) decreasing; decreasing B) increasing; increasing C) increasing; decreasing D) decreasing; increasing
At a farmer’s market, tomatoes are priced at $4 per pound. Most customers offer $2 per pound, but eventually buy them for $3 per pound. In this case, $3 per pound represents ______.
a. market price b. consumer surplus c. producer surplus d. deadweight price