While the classical economists believed that both velocity and output are stable, Keynesians believe
a. velocity is stable and output is variable
b. velocity and output are both variable
c. output is stable and velocity is variable
d. on this one point only, that the classical economists are right: that both output and velocity are stable
e. at low levels of income both velocity and output are stable, but at high levels of income velocity becomes variable
B
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The Federal Reserve could target both the money supply and the interest rate at the same time if it controlled money demand along with money supply
Indicate whether the statement is true or false
The advantage of real GDP as a measure is the fact that it only increases
a. True b. False Indicate whether the statement is true or false
Investment as defined by economists differs from investment as defined by the general public in that
What will be an ideal response?
Refer to Scenario 7.8 below to answer the question(s) that follow. SCENARIO 7.8: A swimming pool cleaning company has the following production possibilities. With one, two, three, and four workers, the company can clean 5, 12, 17, and 20 pools per day, respectively. Refer to Scenario 7.8. The average product of labor with four workers is
A. 3. B. 3.3. C. 5. D. 13.5.