One important difference between early and later Keynesians is that
a. early Keynesians were more skeptical of the use of monetary policy.
b. early Keynesians were more skeptical of the use of fiscal policy.
c. early Keynesians believed that monetary policy was responsible for the Great Depression.
d. early Keynesians thought that fluctuations in investment and not consumption drove the Great Depression.
e. both a and d.
E
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The unattainable points in a production possibilities diagram are
A) the points outside the production possibilities frontier. B) the points of the horizontal and vertical intercepts. C) the points within the production possibilities frontier. D) the points along the production possibilities frontier.
One advantage of a consumption tax is that there are fewer problems with inflation.
A. True B. False C. Uncertain
Gasoline and motel rooms are complements for many consumers. When the price of gasoline declines, consumers take longer vacations and rent more motel rooms. Therefore, the cross price elasticity between gasoline and motel rooms is
A. positive. B. negative. C. less than one because neither is a luxury. D. more than one because both are luxuries.
Whenever marginal cost exceeds marginal revenue,
a. profit declines if the firm reduces output b. profit increases if the firm increases output c. the firm should shut down d. losses decrease if the firm increases output e. profit declines if the firm increases output