One of the main conclusions of Keynes in The General Theory of Employment, Interest, and Money is that the economy
A. will usually be at full employment.
B. will not automatically gravitate to full employment.
C. will automatically move quickly toward full employment without inflation.
D. is usually on the verge of a major depression or hyperinflation.
Answer: B
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Which of the following is a factor that determines the shape of the aggregate demand curve?
A) the real-balance effect B) the wage effect C) the nominal-balance effect D) the price level effect
Assume the First Bank of Townsville makes a loan of $2,500. This loan will
A) increase the First Bank of Townville's liabilities at the Fed. B) have no change on the quantity of money, just its composition. C) increase the First Bank of Townville's reserves. D) increase the quantity of money initially by $2,500. E) decrease the quantity of money initially by $2,500.
For the measure of fit in your regression model with a binary dependent variable, you can meaningfully use the
A) pseudo R2. B) size of the regression coefficients. C) standard error of the regression. D) regression R2.
A reduction in the level of unemployment would have which effect with respect to the nation's production possibilities curve?
A. It would shift the curve to the left. B. It would shift the curve to the right. C. It would not shift the curve; it would be represented by moving from a point inside the curve toward the curve. D. It would not shift the curve; it would be represented by moving from a point on the curve to a point outside the curve.