Economist John Maynard Keynes noted one of the main contributors to the Great Depression in the 1930s was:
A. insufficient spending causing below natural rate output.
B. poor infrastructure for manufacturing.
C. a labor market that could not meet the demands of the market at the time.
D. an insufficient agriculture sector, unable to produce enough food for the large US population.
A. insufficient spending causing below natural rate output.
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Real interest rates are the
A) interest rates quoted in the market. B) interest rates quoted in the market plus the expected inflation rate. C) nominal interest rates plus the inflation rate. D) interest rates quoted in the market minus the inflation rate.
In the aggregate production function, Y represents real GDP, K represents the capital stock, L represents the quantity of labor, and A represents an index of efficiency. Which of the following equations represents the aggregate production function?
A) Y = (K × L) / A B) Y × A = (K × L) C) Y = AF(K, L) D) Y = (K × L) = A /FY
Countercyclical fiscal policy is designed to moderate the severity of the business cycle
Indicate whether the statement is true or false
England has a relatively cool and cloudy climate that is ill suited for grape growing. It can produce 200 units of wine for every 400 units of cloth. Portugal, in contrast, has a relatively warm and sunny climate that is good for growing grapes. It can produce 200 units of wine for every 100 units of cloth. Which country has the higher opportunity cost of producing cloth?
A. England: 2 units of wine for every unit of cloth B. England: 1/2 unit of cloth for every unit of wine C. Portugal: 2 units of wine for every unit of cloth D. Portugal: 1/2 unit of wine for every unit of cloth