In the Keynesian model, the difference between no intervention by the government during a recession and intervention using expansionary monetary or fiscal policy is that no intervention will return the economy to its equilibrium level of output
A. slower than intervention will and at a higher price level.
B. faster than intervention will and at a lower price level.
C. slower than intervention will and at a lower price level.
D. faster than intervention will and at a higher price level.
Answer: C
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Use the following table to answer the next question.ItemBillions of DollarsCheckable deposits$597Small time deposits818Currency639Money-market mutual funds held by businesses1,045Savings deposits, including money-market deposit accounts2,866Money-market mutual funds held by individuals979The size of the M1 money supply is
A. $979 billion. B. $1,415 billion. C. $,1618 billion. D. $1,236 billion.
Explain why exchange rate model based on PPP is a long run theory
What will be an ideal response?
Which of the following is not an example of a two-part pricing scheme in the context of price discrimination?
A) A customer pays full price for the first 10 copies of a software program and then receives a 10 percent discount on each additional copy it buys. B) A firm, e.g., Sam's Club or Costco, charges a membership fee that is separate from the price paid for items purchased from the firm. C) A customer pays a $10 cover charge to enter a bar and then pays $5 for each beverage. D) An amusement park charges an admission fee and then charges a per unit price for each of the rides offered by the park.
What happens if a government uses an expansionary fiscal policy to increase GDP?
a. The aggregate supply curve will shift to the right. b. The aggregate supply curve will shift to the left. c. The aggregate demand curve will shift to the left. d. The aggregate demand curve will shift to the right.