From the Keynesian perspective, when during a recession the quantity supplied is greater than the quantity demanded in the market for some goods and services, there is
A) a decline in potential GDP.
B) a decline in potential GDP relative to real GDP.
C) a decline in real GDP relative to both nominal GDP and potential GDP.
D) a decline in real GDP relative to potential GDP.
D
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A probability weighted value is referred to as a(n):
A) discount value. B) reduced value. C) expected value. D) future value.
If the government increases defense spending by $1 billion and the MPC is 0.8, how much additional spending will occur in the third “round” of spending?
A. $640 million B. $800 million C. $1 billion D. $1.8 billion
So-called precommitments are effective ways of fighting:
A. Framing effects B. Mental accounting C. Anchoring D. Self-control problems
Marginal analysis is useful in economics, but not in other areas of life.
Answer the following statement true (T) or false (F)