The notion that everything the economy produces is purchased
A. sums up Say's law.
B. can be restated as "demand creates its own supply".
C. refers to the real balance effect.
D. was a critical assumption Keynes made in explaining the worldwide depression of the 1930s.
A. sums up Say's law.
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
The more inelastic the demand curve, a monopoly
A) will have a smaller Lerner Index. B) will face a lower marginal cost. C) will earn less profit. D) will lose fewer sales as it raises its price.
The relationship between aggregate expenditures and disposable income is shown by the:
A. ? aggregate expenditures curve. B. ?consumption function. C. ?investment curve. D. ?saving-disposable personal income curve.
The GDP is a measure of the market value of all final goods and services produced in the economy in a given time period.
Answer the following statement true (T) or false (F)