While most economists believe that Keynes was correct when he placed primary focus on aggregate demand manipulation to solve the recessionary gap of the Great Depression, supply-siders are critical of this focus, claiming that
A. Keynesian economics can only be successful if interest rates are allowed to rise.
B. Keynesian economics diverted attention away from important factors such as work effort, labor productivity, and incentives to save and invest.
C. the Great Depression was caused by the stock market crash of 1929, not a decline in aggregate demand.
D. greater control of the way in which stocks and bonds were traded would have brought the economy out of the Great Depression.
B. Keynesian economics diverted attention away from important factors such as work effort, labor productivity, and incentives to save and invest.
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Answer the next question(s) based on the following supply and demand schedules in units per week for a product.PriceQuantity DemandedQuantity Supplied$601004005014034040180280302202202026016010300100The government's introduction of a guaranteed price floor of $50 will result in
A. a shortage of 200 units. B. an unstable market. C. a surplus of 200 units. D. no shortage or surplus.
Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?
A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure B and Figure C
Refer to the table above. If the market supply of labor per week when the wage rate is $100 is 125 hours, labor supplied by Jim per month at the wage rate is:
A) 12 hours. B) 30 hours. C) 50 hours. D) 75 hours.
A financial innovation that developed as a result of banks avoidance of bank branching restrictions was
A) money market mutual funds. B) commercial paper. C) junk bonds. D) bank holding companies.