If the economy is experiencing less than full-employment, the Keynesian school recommends that the government:
a. do nothing to stimulate the economy.
b. undertake fiscal policy to stimulate aggregate demand.
c. undertake fiscal policy to stimulate aggregate supply.
d. balance the budget to stimulate aggregate demand.
b
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Which of the following industries is most likely to exhibit the characteristic of free entry?
a. electricity b. satellite radio c. mineral mining d. tennis shoes
If Sara Thomas' disposable income increases from $4,000 to $4,500 and her level of saving increases from $200 to $300, it may be concluded that her marginal propensity to:
a. Consume is .75 b. Save is .30 c. Consume is .60 d. Consume is .80
In 2007, Google spent more than $2 billion on property and equipment. This is called
A. aggregate production investment. B. intermediate inputs. C. aggregate investment. D. investment in physical capital.
The federal funds rate is a
A. one-day rate. B. one-year rate. C. one-month rate. D. one-week rate.