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.
Marginal analysis is useful in economics, but not in other areas of life.
Answer the following statement true (T) or false (F)
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