Which of the following policies would Keynes's followers support when an increase in business optimism shifts the aggregate demand curve away from long-run equilibrium?
a. increase taxes
b. increase government expenditures
c. increase the money supply
d. All of the above are correct.
a
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The relationship between the labor employed by a firm and the real wage rate is shown by the
A) supply of labor curve. B) supply of jobs curve. C) demand for jobs curve. D) demand for labor curve.
Behaving strategically:
A. means recognizing that the actions of others will affect the trade-offs you face, and acting accordingly. B. is an essential part of game theory. C. involves rational decision making. D. All of these statements are true.
The aggregate output demanded for a given price level occurs at the point where: a. an economy reaches the full employment of labor. b. aggregate expenditure equals real GDP
c. actual aggregate expenditures exceeds real GDP. d. inventories of goods and services are increasing. e. inventories of goods and services are decreasing.
If a monopolist's marginal costs increase by $1 for all levels of output, then the monopoly price will
a. rise by $1. b. rise by more than $1. c. rise by less than $1. d. not change, but profits will decrease.