Prior to Keynes, the prevailing viewpoint concerning equilibrium in the economy was that of
a. supply-side economics.
b. monetarism.
c. classical economics.
d. depression economics.
c. classical economics.
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Recently, many developing countries throughout the world have begun to institute policies that seek to
A) liberalize international trade by lowering trade barriers. B) reduce dependence on international trade by raising trade barriers. C) reduce dependence on international trade by instituting laws that call for buying only domestically made goods. D) Two of the above.
A depreciation of the dollar under perfect capital mobility would cause
a. the LM curve to shift to the left. b. the LM curve to shift to the right. c. the IS curve to shift to the right. d. the IS curve to shift to the left. e. the BP curve to shift up.
Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, what will the price be?
A) $60 B) $64 C) $70 D) $71 E) $80
Consider two goods--one that generates external costs and another that generates external benefits. The actual market outcome would
a. result in output that is lower than the efficient output for both goods. b. result in output that is higher than the efficient output for both goods. c. result in output that is lower than the efficient output for the good with an external benefit and output that is higher than the efficient output for the good with an external cost. d. result in output that is higher than the efficient output for the good with an external benefit and output that is lower than the efficient output for the good with an external cost.