According to the Keynesian view, capitalism
a. is a highly productive form of economic organization that works best when government intervention is least.
b. experiences booms and busts because of the instability of private investment that is driven by fickle changes in business optimism.
c. experiences booms and busts that are primarily the result of inappropriate monetary policy.
d. experiences fluctuations in aggregate demand that cannot be controlled with fiscal policy.
B
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In the above figure, the relationship between costs indicates that the distance between curves
A) A and B is equal to the fixed cost. B) A and B is equal to the variable cost. C) B and C is equal to the fixed cost. D) B and C is equal to the average total cost.
Agents hire principals
Indicate whether the statement is true or false
Private goods are excludable and nonrival in consumption
a. True b. False
Money is a ________ and a transaction is a ________
A) stock; stock B) flow; flow C) flow; stock D) stock; flow