In the Keynesian model, it is assumed that, when demand for a firm's product changes, the firm:
A. changes prices and production levels to meet demand.
B. changes prices to meet the demand.
C. changes production levels to meet the demand.
D. changes prices, but holds production levels constant, to meet the demand.
Answer: C
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Which of the following has not been promoted by HPAE?
A) Large job creation in the government sector B) Land reform C) Free basic health care D) Significant investments in rural infrastructure
When the Federal Reserve calls in a discount loan from a bank, the monetary base ________ and reserves ________
A) remains unchanged; decrease B) remains unchanged; increase C) decreases; decrease D) decreases; remains unchanged
Inflation induces people to spend more resources maintaining lower money holdings. The costs of doing this are called shoeleather costs
a. True b. False Indicate whether the statement is true or false
There are two current trends in the financial industry which run in opposite directions. What are they?
What will be an ideal response?