In Figure 1 above the Keynesian equilibrium occurs at what output level?

A. Y2
B. Y3
C. Y1
D. it does not occur at any output level in the graph.


Answer: A

Economics

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The labor supply curve reflects how

a. workers' decisions about the labor-leisure tradeoff respond to a change in the wage. b. workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied. c. firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded. d. firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.

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Deadweight loss measures the loss in society's welfare that occurs because a monopolist can earn profits without the concern of new firms entering its industry

a. True b. False Indicate whether the statement is true or false

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A bank currently has checkable deposits of $100,000, total reserves of $30,000, and loans of $70,000. If the required reserve ratio is lowered from 20 percent to 15 percent, this bank can increase its loans by:

A. $10,000. B. $15,000. C. $75,000. D. $5,000.

Economics

What matters to people is the real value of money or income.

Answer the following statement true (T) or false (F)

Economics