Which of the following statements is (are) incorrect?
a. Consumption plays a central role in the Keynesian theory of income determination
b. Consumer expenditure is the largest component of aggregate demand
c. In recent years, consumption has totaled between 60 and 70 percent of GDP
d. Keynes believed that investment was largely determined by expectations
e. all of the above are correct
E
You might also like to view...
Business decisions can be made by focusing mainly on the benefits of a decision because most costs are fixed
Indicate whether the statement is true or false
The total cost to a firm of producing zero units of output is
a. zero in both the short run and the long run b. its fixed cost in the short run, zero in the long run c. its fixed cost in the long run, zero in the short run d. its fixed cost in both the short run and the long run e. its variable cost in both the short run and the long run
List and describe the sources of spending in the economy by focusing on the four major sectors of the economy
What will be an ideal response?
The above figure shows the payoff to two firms in an industry deciding to make an investment in worker safety. Neither firm will make the investment because
A) each can benefit from the other firm incurring the costs. B) there is no benefit to making the investment. C) each firm pays for the other firm's investment. D) society does not care about worker safety.