In the Keynesian model, money is
A) neutral in both the short run and the long run.
B) neutral in neither the short run nor the long run.
C) neutral in the short run, but not in the long run.
D) neutral in the long run, but not in the short run.
D
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Refer to the scenario above. If these four friends are the only bidders and each bidder uses his optimal strategies, the owner of the good will earn an expected revenue of ________
A) $210 B) $350 C) $500 D) $625
What is the difference between aggregate expenditure and aggregate demand?
What will be an ideal response?
Holding the level of prices fixed implies that a given increase in aggregate demand
A) will have a smaller effect on real GDP than would be the case if prices were more flexible. B) will have a larger effect on real GDP than would be the case if prices were more flexible. C) has the same effect on real GDP as when prices are more flexible. D) has a smaller effect on nominal GDP than when prices are more flexible.
According to the above figure, the average propensity to save (APS) is zero at point
A) D. B) F. C) I. D) J.