The Keynesian approach, with its focus on aggregate demand and sticky prices, has proven useful in understanding how the economy fluctuates in the short run and why recessions and
a. natural unemployment occur.
b. cyclical unemployment occur.
c. structural unemployment occur.
d. full unemployment occur.
b. cyclical unemployment occur.
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All of the following are required to make a tying arrangement vulnerable to antitrust prosecution except which one?
A) There must be some nontrivial amount of commerce affected by the tying contract. B) There must be proof of an actual tie between two products. C) There must be at least two products involved. D) The seller cannot have substantial market power in the market for the tying product.
The lower the interest rates
a. the more value individuals place on future dollars b. the less value individuals place on future dollars c. less investments will take place d. does not affect the investment strategy
Government purchases, as a component of GDP include all except:
A. goods and services bought by all levels of government. B. both consumption- and investment-type goods bought by the government. C. include services the government pays for. D. goods purchased by government from foreign countries.
If the Fed sells a T-bill to an individual rather than to a commercial bank, how will this affect the money supply?
a. It will increase the money supply. b. It will increase the checking account balance of the individual. c. It will have no effect on the money supply. d. It will decrease the money supply.