Answer the following statements true (T) or false (F)
1. Higher price levels are associated with lower aggregate expenditure at every level of income.
2. The classical economists held that chronic unemployment was likely.
3. According to the classical economists, demand creates its own supply.
4. Keynes suggested that Say’s Law did not apply to a monetary economy because many individuals hold money as saving instead of spending it.
5. Keynes stated that equilibrium could exist at any level of employment or unemployment.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
5. TRUE
You might also like to view...
Economic analysis and policy are made more difficult by
A. having so much data to work with. B. inadequate and imperfect information. C. an incomplete consensus on the basic goals of social policy. D. the lack of public interest and opinion on economic questions. E. the major economic problems society faces.
Which of the following statements is true?
A. When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will certainly be for the worse. B. When production of a good yields negative externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount greater than costs will increase. C. When production of a good yields positive externalities but output is currently at the market level, then a change in output to the socially optimal level will cause benefits to increase by an amount less than costs will increase. D. a, b, and c E. none of the above
Exhibit 9-8 Profit maximizing for a monopolist
?
As shown in Exhibit 9-8, if the monopolist produces the profit-maximizing output, total revenue is the rectangular area:
A. OQAP1. B. OQ2BP2. C. OQ3CP3. D. OQ2DP4.
In economics, the concept of active government intervention in the macroeconomy was first emphasized by
A. supply-side economists. B. rational expectation theorists. C. monetarists. D. John Maynard Keynes.