Real GDP is ________ determined in the classical model and ________ determined in the Keynesian model.

A. supply; demand
B. demand; supply
C. supply; supply
D. demand; demand


Answer: A

Economics

You might also like to view...

Bond holders:

A. lose when actual inflation equals expected inflation. B. do not lose when the expected inflation built into the nominal interest rate is lower than actual inflation. C. gain when actual inflation is more than was expected. D. do not lose when the expected inflation built into the nominal interest rate is correct.

Economics

Many of the important international governmental institutions that deal with the global economy have their roots in the Bretton Woods conference at the end of World War II

Indicate whether the statement is true or false

Economics

Shirking of one's duties is often encountered in team production settings because

a. few individuals are well-intentioned b. teamwork is recognized as less significant than individual performance c. teammates face a dilemma posed by a dominant strategy to shirk d. reputation effects dominate in long-term teams e. teamwork can be less than the sum of the individual parts

Economics

A firm's average fixed cost when producing 2,000 units of output equals $10 . When only 1,000 units of output are produced: a. AFC must still equal $10

b. AFC must equal $20. c. AFC must equal $5. d. marginal cost must equal $20.

Economics