John Maynard Keynes believed that wages may be inflexible in the downward direction. Consequently, an economy
A) could get stuck in long-run equilibrium.
B) could get stuck in a recessionary gap.
C) could get stuck in an inflationary gap.
D) would always produce more than Natural Real GDP.
E) b and c
B
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The __________ is calculated as the face value minus the purchase price divided by the face value
A) coupon equivalent yield B) bond equivalent yield C) yield on a discount basis D) yield to maturity
Which of the following best represents the effects of an increase in the price of coffee, other things being equal?
a. A leftward shift in the demand curve for coffee. b. A downward movement along the demand curve for coffee. c. A rightward shift in the demand curve for coffee. d. An upward movement along the demand curve for coffee.
Politicians often point to wage differentials as evidence of labor-market discrimination against ethnic minorities and women; however, economists argue against this approach because people differ in the amount of human capital they have and the kinds of work they are willing and able to do
a. True b. False Indicate whether the statement is true or false
The IS curve illustrates all combinations of domestic output levels and interest rates for which
A. the domestic product market is in equilibrium. B. the domestic money market is in equilibrium. C. there is full employment. D. there is a zero balance in the country's official settlements balance.