According to Keynes, during extreme times like deep recessions, which group is the only one possessing the power and resources to move aggregate demand?
a. Consumers
b. Producers
c. Government
d. Investors
c. Government
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Suppose the price elasticity of demand for bouquets of flowers is 4.0. You are charging $8 per bouquet. If you want to increase the quantity of bouquets you sell by 20 percent, what price should you charge?
What will be an ideal response?
What is one way the Federal Reserve Bank serves the government?
What will be an ideal response?
Recall the Application about using value added to measure the size of Walmart to answer the following question(s). According to this Application, why is the value of Walmart's 2017 sales NOT an accurate measurement of its actual sales impact on the U.S. economy?
A. The sales figure did not account for chain-weighted inflation measurements. B. The sales figure includes the value of purchases from other firms. C. The sales figure did not take into account the recession of 2008. D. The sales figure was in nominal, not real dollars.
________ results when an economy experiences high unemployment and high inflation at the same time
a. Stagflation b. Deflation c. Reflation d. Recession