Keynesian economists ________
A) observe that prices are perfectly flexible
B) believe that the classical dichotomy never holds
C) believe that only the interaction between savings and investment affects the real interest rate
D) all of the above
E) none of the above
E
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Which of the following sets of goods might, under the right circumstances, be substitutes for an automobile?
A) Buses, trains, planes B) Powerboats, blimps, motorcycles C) Motels, tents, cardboard boxes D) Designer suits, fine wines, fancy homes E) All of the above.
Money demand is given by Md/P = 1000 + .2Y - 1000i. Given that P = 200, Y = 2000, and i = .10, velocity is equal to
A) 0.65. B) 0.75. C) 1.33. D) 1.54.
Some economists conduct empirical research on the theory of the firm by measuring the degree of technical efficiency achieved by actual firms. What type of research contributions are provided by these studies?
A) Normative B) Positive C) Administrative D) Executive
Refer to Figure 18.1. With free trade, what is the equilibrium price of gloves in Duckland?
A. $0 B. $8 C. $9 D. $11