Cyclical unemployment originates with an imbalance between injections and leakages, not the absolute size of injections or leakages.
Answer the following statement true (T) or false (F)
True
As long as leakages equal injections regardless of the size, there is no cyclical unemployment; however, when leakages exceed injections, there will be increased cyclical unemployment.
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In the Modern Keynesian Model the short run aggregate supply curve slopes upward. How could one explain the shape of the upward sloping? short-run aggregate supply curve by only focusing on the capital? input?
In order to maximize its profit, a single-price monopoly produces the amount of output so that
A) P = MC. B) MR = MC. C) P = MC - MR. D) P = MR. E) P = ATC.
Using a decision tree:
A. allows a player to see his optimal strategy in a simultaneous game. B. can help identify the dominant strategies in a prisoner's dilemma-type game. C. allows a player to see his optimal strategy in a sequential game. D. can help define a binding commitment strategy.
In economics, the term "investment" refers to the purchase of stocks and bonds.
Answer the following statement true (T) or false (F)