According to Keynesian economists, the key limitation on business production, and therefore on employment, is the
A. demand for output produced by business.
B. rate of growth of the money supply.
C. price of raw materials.
D. level of the wage rate for skilled labor.
A. demand for output produced by business.
You might also like to view...
Of age, marital status, family size, education, and race, which is the single biggest factor affecting the household income distribution?
What will be an ideal response?
Suppose when Nablom's Bakery raised the price of its breads by 10 percent, the quantity demanded fell by 15 percent. What was the effect on sales revenue?
A) Sales revenue increased. B) Sales revenue decreased. C) Sales revenue remained unchanged. D) It cannot be determined without information on prices.
Suppose that a $4 billion increase in government spending increases Real GDP by $60 billion, and that a $3 billion tax reduction increases Real GDP by $68 billion. In this situation, the tax multiplier is _______________ the government spending multiplier
A) less than B) greater than C) equal to D) none of the above
The circular flow model illustrates the crucially important idea of macroeconomics, which is that:
A. only two markets exist in every economy-input and output. B. income is lower when there is more spending on goods and services. C. every expenditure of someone in the economy is exactly equal to the income of another. D. the flow of two things in the economy-"stuff" and "money"-travel in the same direction.