One of the major insights by economist John Maynard Keynes about inventories and demand was that if planned inventories:
A. < actual inventories then demand was lower than anticipated.
B. > actual inventories then demand was lower than anticipated.
C. = actual inventories then demand was higher than anticipated.
D. > actual inventories then demand was higher than anticipated.
Answer: B
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Recently the governor of Vermont proposed that cigarette taxes in Vermont should be increased substantially, from 44 cents a pack to 66 cents a pack. He estimates that Vermont can raise $20 million in revenue from this tax hike
He also pointed out that the neighboring state of New Hampshire was considering an increase in cigarette taxes. a. How can it be that an increase in cigarette taxes will increase tax revenue, because, after all, a higher tax will increase cigarette prices and thereby decrease the quantity demanded? b. If New Hampshire chooses not to increase cigarette taxes, is it likely that Vermont can still raise $20 million in tax revenue? Why or why not? Explain
Clifford lives by the motto "Eat, drink, and be merry today, for tomorrow doesn't matter"
If today's consumption is represented by "x" and tomorrow's consumption is represented by "y," then which of the following best represents Clifford's utility function? A) U = x - y B) U = x/y C) U = x D) U = y
Which of the following are benefits created by the immigrants?
a. Increase in educational expenditures on public schools for their children b. Increase in the wages of unskilled laborers c. Reduction in costs for some firms d. Increased expenditures on health care for illegal immigrants at emergency clinics and hospitals e. Increase in the wages of skilled workers
A vertical long-run Phillips curve is consistent with
a. the conclusion of Friedman and Phelps, but it is not consistent with the classical idea of monetary neutrality. b. the classical idea of monetary neutrality, but it is not consistent with the conclusion of Friedman and Phelps. c. both the conclusion of Friedman and Phelps and the classical idea of monetary neutrality. d. neither the conclusion of Friedman and Phelps nor the classical idea of monetary neutrality.