Keynesian models involve considerable efforts to explain the determinants of
A) the money supply.
B) aggregate supply.
C) liquidity preference.
D) the demand deposit multiplier.
C
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In the DuPont cellophane case, rivals accused DuPont of monopolizing cellophane. DuPont claimed that the relevant market was flexible wrapping material, such as wax paper and aluminum foil, rather than just cellophane. DuPont won the case. What type of evidence constituted DuPont’s defense?
What will be an ideal response?
Why would you expect the demand for diamond jewelry to fall faster than plastic, costume jewelry when all incomes fall?
What will be an ideal response?
Which of the following is a definition of economic fluctuations?
a. Movements in prices around their long-run trend b. Shifts in the long-run trend of output c. Movements of the real wage over the long run d. Shifts in the long-run trend of prices e. Movements in output around its long-run trend
Because monetary stimulus overwhelmed fiscal contraction in the United States during the 1992–2000 period,
A. real GDP grew. B. real GDP decreased. C. the rate of inflation increased. D. the budget deficit increased.