John Maynard Keynes argued that if many households decide at the same time to increase saving and reduce spending,
What will be an ideal response?
this may benefit the economy in the long run, but could be counterproductive in the short run
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Which of the following is the central bank of the United States?
A) Comptroller of the Currency B) Treasury Department C) Federal Reserve System D) Office of the Budget
In the long run, firms in a competitive market
A) shut down because profit goes to zero. B) lose money. C) are not profit maximizing. D) earn zero economic profit.
In the United States, government purchases, as a percentage of real GDP, have generally declined since the 2001.
a. true b. false
Economists generally define the short run as being
A) that period of time in which at least one of the firm's inputs, usually plant size, is fixed. B) that period of time in which all inputs are variable. C) any period of time less than one year. D) any period of time less than six months.