John Maynard Keynes argued that
A. downward nominal-wage rigidity prevented the classical self-correction mechanism from working to end recessions.
B. the automatic forces of the market would restore the economy to full employment very quickly.
C. the classical macroeconomists' argument that government spending should be used in recessions would not eliminate a recession.
D. fluctuations in aggregate supply were the primary causes of recessions.
A. downward nominal-wage rigidity prevented the classical self-correction mechanism from working to end recessions.
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The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when ________ cell phones and ________ DVDs. are produced
A) 2 million; 9 million B) 4.5 million; no C) 3 million; 8 million D) 5 million; 15 million E) 3 million; 9 million
Informing people of social norms is likely to get:
A. more people to act that way, which is always positive. B. more people to act that way, which can be a problem if policymakers are trying to change typical behavior. C. more people to act that way, which is always negative. D. less people to act that way, because people like to be unique.
Suppose a bank has $500,000 in deposits and a required reserve ratio of 10 percent. Then required reserves are
A. $50,000. B. $500,000. C. $5,000,000. D. $10,000.
Ideas are not rivalrous, meaning that:
A. no one can benefit from an idea. B. most ideas are generated by the government. C. many people can benefit from an idea at the same time. D. only one person can benefit from an idea at a time