The Keynesian hypothesis assumes that people know the "true model" of the economy and form their expectations of the future based on this model.
Answer the following statement true (T) or false (F)
False
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As a result of slow economic growth following the recession of 2007-2009, companies including Intel and Worthington Industries cut production and employment in 2015 as a result of the sluggish growth in the total amount of spending in the economy. The total amount of spending in the economy is known as
A) planned investment spending. B) aggregate expenditure. C) deficit spending. D) equilibrium spending.
If the inflation rate exceeds the nominal rate of interest,
a. the real interest rate is negative. b. lenders lose. c. savers lose. d. all of these.
Per capita GDP measures both market and nonmarket production
Indicate whether the statement is true or false
One of the theories that explains oligopoly behavior is the kinked demand curve theory. The kinked demand curve
a. applies when competitors match price decreases but not price increases b. could apply to market demand in any market structure c. applies when competitors match price increases but not price decreases d. applies to the price leadership model e. applies when competitors act independently