According to John Maynard Keynes:
A. aggregate expenditures (demand) can be forever inadequate to achieve full employment.
B. aggregate output (supply) can be forever inadequate to achieve full employment.
C. the economy would automatically adjust to full employment in the long run.
D. neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.
Answer: A
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Comparing the short-run Phillips curve and the long-run Phillips curve, we see that there is
A) no relationship between the two curves. B) no tradeoff in either curve. C) a tradeoff in both curves. D) only a long-run tradeoff between inflation and unemployment but not a short-run tradeoff. E) only a short-run tradeoff between inflation and unemployment but not a long-run tradeoff.
Most real-world choices aren't about getting all of one thing or another; instead, most choices involve _________________, which includes comparing the benefits and costs of choosing a little more or a little less of a good.
A. benefit analysis B. utility C. marginal analysis D. opportunity cost
The term “unemployed” includes all people who want a job, but don’t have one.
Answer the following statement true (T) or false (F)
What do modern central bankers not do?
What will be an ideal response?