In Figure 9.6, if full employment occurs at QC, then aggregate demand is
A. Too small, causing cyclical unemployment.
B. Too small, causing demand-pull inflation.
C. Too great, causing cyclical unemployment.
D. Just right.
Answer: A
You might also like to view...
As contrasted to the Keynesian view, mainstream economists believe that ________ than Keynesian economists believe
A) the real GDP growth rate is larger B) any crowding out effect is smaller C) the effects from fiscal stimulus are weaker D) potential GDP is less important E) the multiplier effect is larger
Why do people donate less when it is costlier to give?
What will be an ideal response?
If cable TV subscriptions and movie rentals are substitutes for each other, what is the effect in each of these markets of an increase in wages for people who work for the cable TV company? Use your analysis to determine the sign of the cross
elasticity of demand between the quantity of movie rentals and the price of cable TV.
Which of the following facts about competitive ideas is true?
a. A successful competitive idea should be big in terms of investment. b. A competitive idea is usually built on a foundation of other ideas. c. A competitive idea should necessarily be scientific. d. A successful competitive idea must be original.