According to John Maynard Keynes:
a. aggregate expenditures (demand) can be forever inadequate to achieve full employment.
b. aggregate output (supply) can be forever inadequate to achieve full employment.
c. the economy would automatically adjust to full employment in the long run.
d. neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.
a
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The dollar demand curve in the foreign exchange market is:
A) vertical. B) downward sloping. C) upward sloping. D) horizontal.
Assume an economy with a single bank, no excess reserves, no savings accounts, and no currency held by the public. With a required reserve ratio of .4, the demand deposit expansion multiplier is
A) 20. B) 10. C) 4. D) 2.5.
A monopolist firm may be more innovative than a competitive firm.
Answer the following statement true (T) or false (F)
"The firm hires the factor up to the point where the value of the factor's marginal product is equal to the factor's price." This statement applies to which factor of production?
a. labor only b. land only c. capital only d. land, labor, and capital