According to Keynesians
A. an increase in aggregate demand will always lead to inflation.
B. an increase in aggregate demand will eventually lead to deflation.
C. an increase in aggregate demand will eventually lead to less real GDP.
D. Insufficient aggregate demand could keep an economy in a depression for an extended period of time.
D. Insufficient aggregate demand could keep an economy in a depression for an extended period of time.
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Critically evaluate the following statement. "If a country has an absolute advantage in the production of everything it necessarily follows that it will have a comparative advantage in the production of everything."
What will be an ideal response?
Physicians who own their own diagnostic testing facilities tend to order more tests, charge higher fees for them, and have higher total bills to patients. This practice of self-referral is an example of:
a. adverse selection. b. cognitive dissonance. c. physician-induced demand. d. moral hazard. e. res ipsa loquitor.
The figure below shows the production-possibility curves of Canada (AB) and the rest of the world (CD). The international price ratio faced by the countries is represented by the line P2. I1 and I2 are community indifference curves for Canada and the rest of the world. After engaging in free trade, Canada consumes ________ bales of cotton and ________ bushels of wheat.
A. twelve; eleven B. twenty; eleven C. sixteen; six D. three; twenty
The Dow Jones Industrial Average:
A. gives greater weight to shares with higher prices. B. gives equal weight to a change in the price of the stock of any company in the index. C. is a value-weighted index. D. reflects that a 10% increase in a share of stock selling for $30 will have the same effect on the index as a 10% increase in the price of a stock selling for $60.