The Keynesian analysis of macroeconomic equilibrium shows
A. how declines in aggregate supply can cause prosperity.
B. how declines in aggregate demand can cause economic expansion.
C. how declines in aggregate purchases can result in a recession and cyclical unemployment.
D. All of the choices are correct.
C. how declines in aggregate purchases can result in a recession and cyclical unemployment.
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When the market for a commodity is in equilibrium:
A) there will still be some unsold stock of the commodity. B) all sellers of the commodity will want to change their behavior. C) no economic agent will want to change his or her behavior. D) all buyers of the commodity will want to change their behavior.
Let C = 80 + 0.6y and I = 40. The value of the MPS is
A) 0.24. B) 0.4. C) 0.48. D) 0.6.
The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment
A) increased; the same size as B) increased; smaller than C) decreased; larger than D) decreased; smaller than E) increased; larger than
Which of the following best describes a double coincidence of wants?
A) Two buyers want the same good. B) Neither buyer wants a good. C) You have what another wants and you want what they have. D) A buyer and a seller rather than two buyers or two sellers must meet. E) None of the above answers is correct.