The major difference between the Keynesian model and the classical theory of employment is that
A. the interest rate will not always equalize savings and investment.
B. not everything produced will necessarily be purchased.
C. saving and investing are done by different people for different reasons.
D. wages and prices are assumed to be flexible downwards.
D. wages and prices are assumed to be flexible downwards.
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Refer to Figure 9.2. At price 0H and quantity Q1, producer surplus is the area
A) 0ABQ1. B) 0EDQ1. C) AHB. D) 0FGQ1. E) none of the above
The labor force participation rate of women in the United States has been
a. increasing for several decades. b. decreasing for the past several decades after increasing dramatically in the early 1900s. c. approximately constant during the last three decades. d. decreasing since the early 1900s.
In the open-economy macroeconomic model, if the supply of loanable funds increases, net capital outflow
a. and the real exchange rate increase. b. and the real exchange rate decrease. c. increases and the real exchange rate decreases. d. decreases and the real exchange rate increases.
In the case of extraction of a nonrenewable resource, when user costs decrease, then it implies that expected future profits:
A. Decrease, while the amount of current extraction increases B. Decrease, and the amount of current extraction decreases C. Increase, and the amount of current extraction increases D. Increase, while the amount of current extraction decreases