John Maynard Keynes
A. agreed with classical writers that strong automatic pressures drive market economies to full employment.
B. focused on attaining the long-run macroeconomic goal of high, but stable economic growth.
C. argued that a market economy might become stuck in a short-run equilibrium in which substantial capital and labor lay idle.
D. argued that short-run equilibrium occurs only at full employment.
C. argued that a market economy might become stuck in a short-run equilibrium in which substantial capital and labor lay idle.
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The spread between the interest rates on bonds with default risk and default-free bonds is called the
A) risk premium. B) junk margin. C) bond margin. D) default premium.
If the Fed conducted an open market sale of government bonds and raised the discount rate: a. the money supply would increase
b. the money supply would decrease. c. the money supply would not change. d. the money supply could either increase or decrease.
If a U.S. citizen buys a car produced in Germany, this transaction will add to
a. U.S. aggregate demand. b. U.S. aggregate supply. c. German aggregate demand. d. German imports.
The deviation of unemployment from its natural rate is called cyclical unemployment
a. True b. False Indicate whether the statement is true or false