According to Keynes, once a system attains an economy-wide equilibrium
A. planned investment will be zero.
B. the economy will be at full productive capacity.
C. there may or may not be excess productive capacity.
D. planned consumption will be zero.
Answer: C
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Suppose Melita is willing to pay a maximum of $30 for a pair of normal sunglasses and $36 for the same pair with a double UV-protection filter. If the unit cost of upgrading a product is $6, the seller will upgrade the product if Melita pays at least $35 for it
Indicate whether the statement is true or false
The expanded circular flow model is a complex set of money, resource, and product flows in and out of households, firms, government, and foreign economies. If you account for each of the in and out flows, you can conclude that
a. investment must be zero b. savings can be greater than investment c. savings can be smaller than investment d. savings must equal investment e. savings must equal zero
On average, persons with more education tend to draw Social Security benefits for a
a. longer period of time than average b. shorter period of time than average c. period of time that is comparable to the U.S. average d. longer period of time if they have a master's degree but a shorter period of time if they have a Ph.D.
Governments contribute to increased average labor productivity in each of the following ways except by:
A. allowing the free and open exchange of ideas. B. establishing well-defined property rights. C. maintaining political stability. D. imposing taxes on wages.