Which of the following is true about Keynes?
A. He focused primarily on reducing inflation by shifting aggregate supply
B. He was a classical economist and prescribed a policy of laissez faire
C. He believed aggregate demand could be inadequate to ensure full employment
D. He was opposed to government intervention in the economy
C. He believed aggregate demand could be inadequate to ensure full employment
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Suppose that at a firm's profit-maximizing level of output, its total revenue is $1,250, the total cost of its variable factors of production is $1,000, and its total fixed cost is $500. This firm will ________ in the short run, and will ________ in the long run.
A. earn a profit; earn a loss B. shut down; reopen for business C. not shut down; exit the industry D. earn a loss; earn a profit
A rent ceiling
A) increases the quantity of rental units supplied. B) cannot change the market price. C) set above equilibrium price has no effect. D) generally aims at insuring that landlords receive a higher rent than would otherwise be the case.
Based on the following information, calculate public saving, net foreign investment, and national income. Assume that the capital account is zero and net transfers are zero
private saving = $145 billion exports = $285 billion imports = $240 billion consumption = $600 billion private investment = $125 billion government purchases = $75 billion
One of the characteristics of financial repression is
(a) negative real interest rates. (b) lack of credit rationing. (c) capital flowing to the highest rate of return. (d) all of the above. (e) none of the above.