Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
A. an increase the demand for goods and services.
B. an increase in real GDP.
C. lower interest rates, which will stimulate aggregate demand and keep the economy at full employment.
D. a lower price level, which will quickly guide the economy to full-employment equilibrium.
Answer: B
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What will be an ideal response?
With which country did the Debt Crisis of the early 1980s begin?
A) France B) Mexico C) Argentina D) Japan E) Germany
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A. should cut back production to increase profits. B. should increase production to increase profits. C. is producing a profit-maximizing quantity. D. is impossible to tell if it is actually maximizing profits.
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