John Maynard Keynes disagreed with the classical economists because he believed that
A) wages and prices adjust slowly.
B) international trade plays a major role in the macroeconomy.
C) government intervention in the economy cannot reduce business cycles.
D) unemployment will be eliminated quickly by the invisible hand of the market.
A
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If a society moves from a period of time with significant unemployment to a time with full employment, its production possibilities frontier will
A) shift rightward. B) not shift because the society moves from a point inside the frontier to a point on the frontier. C) shift leftward. D) not shift because the society moves from one point on the frontier to a point inside the frontier. E) not shift because the society moves from one point on the frontier to a point outside the frontier.
The Treasury finances government spending by
A) selling securities. B) collecting taxes. C) by collecting tariffs. D) all of these choices are possible.
Which of the following is one of the convergence criteria that countries needed to satisfy to join the Eurozone?
A) 10 consecutive years in the ERM band without devaluation of its currency B) a government deficit of no more than 25% of GDP in the previous year C) total government debt of no more than 60% of GDP in the previous year D) an inflation rate of 0% in the previous 10 consecutive years