Which of the following is a mechanism Keynes advocated for dealing with a situation of depressed output?
A. Laissez-faire
B. Raising taxes
C. Increasing government expenditure
D. Increasing supply incentives
C. Increasing government expenditure
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Economic growth can be portrayed as a(n)
A. movement from a point on to a point inside a production possibilities frontier. B. outward shift of the production possibilities frontier. C. movement from one point to another point on a fixed production possibilities frontier. D. inward shift of the production possibilities frontier.
Central planners in command economies
A. generally set production targets for firms. B. always consult consumers on the output of goods they want to consume. C. allow prices to organize the economy’s production. D. depend upon the invisible hand to coordinate economic activities.
A decrease in the price of a commodity results in a(n)
a. decrease in supply b. decrease in quantity demanded c. increase in demand d. decrease in quantity supplied e. increase in supply
If prices and wages are completely flexible, expansionary monetary policies will ______.
a. set RGDP to zero b. decrease RGDP c. increase RGDP d. not change RGDP