Which of the following is part of Keynesian economic theory?
a. total output adjusts to aggregate expenditure
b. the aggregate supply curve is horizontal
c. businesses adjust their level of output to meet the demand for output
d. All of these.
d. All of these.
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A characteristic of a good model is that
A) its predictions can be tested using real-world data. B) it is useful for making irrefutable predictions. C) it applies to all situations. D) it predicts perfectly.
Which of the following is false? a. We do not have information on nonmarket transactions output that is reliable enough to include it in the GDP. b. The most important nonmarket transaction omitted from GDP are services provided directly in the home. c. The value that individuals place on leisure is omitted in calculating GDP
d. All goods and services exchanged in the current period are included in this year's GDP.
When the interest rate increases, the quantity demanded of money held to satisfy your
a. speculative motive rises b. precautionary motive rises c. transactions motive falls d. precautionary motive falls e. speculative motive falls
In the open-economy macroeconomic model, the market for loanable funds equates national saving with
a. domestic investment. b. net capital outflow. c. the sum of national consumption and government spending. d. the sum of domestic investment and net capital outflow.