The savings rate ________ over the long run but ________ over the short run
A) is constant as Keynes assumed; varies as Friedman assumed
B) is constant as Friedman assumed; varies as Keynes assumed
C) is constant as Friedman assumed; varies as Friedman assumed
D) varies as Keynes assumed; varies as Keynes assumed
C
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With perfect price discrimination ________, and production is expanded until marginal revenue equals ________
A) the firm's demand curve becomes its marginal revenue curve; marginal cost B) the firm's demand curve becomes its marginal revenue curve; average total cost C) the firm's marginal revenue curve bisects the angle with which demand intersects the price-axis; marginal cost D) the firm's marginal revenue curve bisects the angle with which demand intersects the price-axis; average total cost E) economic profit is maximized when the lowest price equals marginal cost; average total cost.
In the steady state of the Solow growth model
A) consumption equals depreciation. B) per capita variables grow at the rate of population growth. C) aggregate consumption grows at a constant rate. D) aggregate output is constant.
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to a sagging stock market, then:
a. Price index falls, and real GDP rises. b. Price index falls, and the change in real GDP is uncertain. c. Price index falls, and real GDP falls. d. The change in price index is uncertain, and real GDP rises. e. The change in price index is uncertain, and real GDP falls.
A rise in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall