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
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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.
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
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.
What matters to people is the real value of money or income.
Answer the following statement true (T) or false (F)