Which statement is true?
A. Both Keynes and the classicals believed that equilibrium GDP and full employment GDP are equal.
B. Neither Keynes nor the classicals believed that equilibrium GDP and full employment GDP are equal.
C. Keynes believed that equilibrium GDP and full employment GDP are equal, but the classicals did not.
D. The classicals believed that equilibrium GDP and full employment GDP are equal, but Keynes did not.
D. The classicals believed that equilibrium GDP and full employment GDP are equal, but Keynes did not.
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Who can determine the true cost of water?
A) Nobody B) Anybody who puts their mind to it C) Only the most competent hydrologist D) A good accountant
In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
An investment project has an expected profit rate of 12 percent. The going rate of interest is 12 percent. Firm X would need to borrow money to carry out this project; firm Y would use its own funds. Which statement is true?
A. Firm X would undertake the project; Firm Y would not. B. Neither firm would undertake this project. C. Both firms would undertake this project. D. Firm Y would undertake the project; Firm X would not.
When jobs are outsourced,
A. Unemployment increases significantly. B. Production possibilities expand. C. Corporations lose money. D. The economy begins to collapse.