Keynes believed
A. lowering wages could cure a depression.
B. the interest rate was more important than the expected rate of profit in determining the level of investment in an economy.
C. our economy always tends toward full employment.
D. aggregate demand was more important than aggregate supply in the short run.
D. aggregate demand was more important than aggregate supply in the short run.
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A monopoly has
a. A perfectly elastic demand curve b. A perfectly elastic supply curve c. An inelastic demand curve d. A more elastic demand curve than a competitive firm
Lydia enjoys going to the theater to see Broadway musicals. The following demand schedule shows Lydia's willingness to pay for theater tickets in a year. Ticket Price Number of Tickets $90 1 $80 2 $70 3 $60 4 $50 5 $40 6 If the price of tickets to Broadway musicals equals $50, Lydia's consumer surplus will be:
a. $350. b. $300. c. $250. d. $100.
All points on the long run Phillips curve that are sustainable in the long run due to economy's self correcting mechanism correspond to
a. the mature rate of unemployment. b. the natural rate of unemployment. c. the seasonal rate of unemployment. d. the cyclical rate of unemployment.
As the number of firms in the oligopoly grows very large, the
a. output effect disappears. b. price effect disappears. c. output effect equals the price effect. d. price of the product greatly exceeds marginal cost.