In the Keynesian model, in a depression
A. the economy operates in the horizontal range of the AS curve.
B. prices and wages are flexible.
C. the interest rate adjusts until desired saving equals desired investment.
D. All of the choices are true.
A. the economy operates in the horizontal range of the AS curve.
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Gains from specialization and mutually beneficial trade ________ wealth or well-being.
A. increases B. decreases C. dilutes D. moderates
A firm has four different investment options. Option A will give the firm $10 million at the end of one year, $10 million at the end of two years, and $10 million at the end of three years. Option B will give the firm $5 million at the end of one year, $10 million at the end of two years, and $15 million at the end of three years. Option C will give the firm $15 million at the end of one year,
$10 million at the end of two years, and $5 million at the end of three years. Option D will give the firm $21 million at the end of one year, nothing at the end of two years, and $9 million at the end of three years. Which of these options has the highest present value if the rate of interest is 5 percent? a. Option A b. Option B c. Option C d. Option D
According to Keynesian economists, monetary policy is __________ effective at changing the price level and Real GDP
A) always B) sometimes C) never D) There is no Keynesian position with respect to monetary policy.
The demand for most agricultural goods is elastic. Consequently, an increase in supply will increase the total income of producers of agricultural goods.
Answer the following statement true (T) or false (F)