Keynesians believe that Select one
a. aggregate demand changes tend to induce aggregate supply changes, offsetting any effect from changes in government expenditures.
b. money wage rate adjustments will quickly eliminate unemployment.
c. the economy will normally operate at full employment.
d. change in business confidence can affect the amount of investment in the economy.
Answer: c. the economy will normally operate at full employment.
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Since 1970 there has been a clear increase in the proportion of the banking industry assets made up of
A) mortgage loans. B) state and local government securities. C) cash. D) business loans.
An increase in the price of sodium carbonate, a chemical compound used in detergents, will:
a. increase the quantity of detergents demanded. b. decrease the quantity of detergents demanded. c. decrease the demand for detergents. d. increase the demand for detergents.
Household income after taxes is called: a. national income
b. gross domestic product. c. disposable personal income. d. gross national product.
The balance of trade is derived by subtracting merchandise imports from merchandise exports
Indicate whether the statement is true or false