In the classical model, aggregate demand and aggregate supply will
A. intersect at the point of full employment.
B. intersect at less than full employment.
C. not intersect.
D. not exist.
Answer: A
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Before 1980, most U.S. corporations raised funds
A) in U.S. stock and bond markets or in foreign capital markets. B) in U.S. banks or in foreign capital markets. C) in U.S. stock and bond markets or in U.S. banks. D) in U.S. and foreign banks.
Please use the following statements to answer this question:
I. The process of testing and revising theories is central to the development of economics as a science. II. Theory is imperfect and may not adequately describe economic behavior in some cases. A) I and II are true. B) I is true and II is false. C) I is false and II is true. D) I and II are false.
The Coase theorem reminds us that efficiency is all about ____________________ and says nothing about ______________________.
A. maximizing total surplus; the distribution of that surplus B. equitably distributing surplus; maximizing that surplus C. who gets the most surplus; whether that's a fair outcome D. None of these statements is true.
Expansionary fiscal policy normally lowers interest rates
a. True b. False Indicate whether the statement is true or false