The Keynesian point of view suggests that
A. supply creates its own demand.
B. demand creates its own supply.
C. the market is always at equilibrium.
D. full employment is the natural result of market forces.
E. wage and price controls can halt deflationary pressures.
B. demand creates its own supply.
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If I = $2,000 . G = $4,000 . T = $1,000 . NX = $0, autonomous consumption = $1,000 and the marginal propensity to consume is 0.6, what is the equilibrium value of output?
a. $16,000 b. $7,000 c. $6,400 d. $3,840 e. $8,000
Division of labor has caused output to rise dramatically since the industrial revolution
a. True b. False Indicate whether the statement is true or false
Which of the following statements is true concerning comparative advantage?
A. Rich nations typically have a comparative advantage in the production of all goods. B. Poor nations typically have a comparative advantage in the production of all goods. C. Poor nations typically have a comparative advantage in high-tech but not agricultural goods. D. Poor nations typically have a comparative advantage in agricultural but not high-tech goods.
What determines the productivity growth rates of a country?
A. Amount of working capital currently available B. Rates of increase of capital, technology, and workforce quality C. Current level of gross domestic product D. Current levels of human capital, physical capital, and technology