Keynes and his followers believed that
A. capitalism was one economic system that guaranteed full employment.
B. the economy could not operate at any level of real Gross Domestic Product (GDP) less than full capacity.
C. wages and prices in the short run were flexible.
D. there was no guarantee that a capitalist economy would reach a full employment equilibrium.
Answer: D
You might also like to view...
Sharmila has a budget line for DVDs and books. DVDs are on the vertical axis and books on the horizontal. Her budget line becomes steeper as
A) the price of a DVD falls. B) the price of a DVD rises. C) her income decreases. D) her income increases.
Data on the income of law graduates collected at different times during the same year is _____.
A. panel data B. experimental data C. time series data D. cross-sectional data
If U.S. consumers become more optimistic about their future income and wealth, the consumption function will shift upward.
Answer the following statement true (T) or false (F)
The record of a country's transactions in goods, services, and assets with the rest of the world is its
A. capital account. B. balance of payments. C. balance of trade. D. current account.