According to the Keynesian aggregate expenditures model, equilibrium and full employment:
A. always occur at the same income level of real GDP.
B. may differ, but there is an automatic mechanism that directs the economy toward full-employment equilibrium.
C. could never occur at the same level of real GDP.
D. do not necessarily occur at the same level of real GDP.
Answer: D
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For a perfectly competitive firm, profit maximization occurs when output is such that
A) total revenue (TR) is maximized. B) total cost (TC) is minimized. C) marginal revenue (MR) = marginal cost (MC). D) average total cost (ATC) is minimized. E) total revenue (TR) equals total cost (TC).
The free-rider problem exists for goods that are ________
A) excludable B) rival C) free D) non-excludable
For a firm in a perfectly competitive industry
A) the demand curve is unitary elastic throughout. B) marginal revenue and product price are equal at every level of output. C) the price elasticity of demand is zero. D) more output can be sold only if the firm unilaterally lowers its product price.
If discouraged workers were counted as unemployed, then as output decreased the unemployment rate would
A. fall by less than is the case if discouraged workers are not counted as unemployed. B. increase by less than is the case if discouraged workers are not counted as unemployed. C. increase by more than is the case if discouraged workers are not counted as unemployed. D. fall by more than is the case if discouraged workers are not counted as unemployed.