Prior to the time of John Maynard Keynes, most economists stressed that
a. low levels of aggregate demand would lead to prolonged periods of unemployment.
b. market economies were inherently unstable because of fluctuating aggregate demand.
c. market adjustments would automatically direct an economy to full employment within a relatively brief period of time.
d. budget deficits and surpluses were necessary for the control of economic fluctuations.
C
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For a perfectly competitive firm, profit is maximized at the output level where i. total revenue exceeds total cost by the largest amount. ii. marginal revenue equals marginal cost. iii. price equals marginal cost
A) i only B) ii only C) ii and iii D) i and ii E) i, ii, and iii
How is offshoring of services different from past trade patterns?
What will be an ideal response?
Explain what rent seeking is and how it may reduce the benefits of industrial policies
What will be an ideal response?
Which of the following is true?
A) The money market model is essentially a model that determines the short-term nominal rate of interest. B) The money market model is essentially a model that determines the short-term real rate of interest. C) The loanable funds model is essentially a model that determines the short-term real rate of interest. D) The loanable funds model is essentially a model that determines the long-term nominal rate of interest.