Charisse is of the opinion that the interest rate depends on the economy's saving propensities and investment opportunities. Most economists would say that Charisse's opinion is
a. Keynesian in nature, and that her view is more valid for the long run than for the short run.
b. classical in nature, and that her view is more valid for the long run than for the short run.
c. Keynesian in nature, and that her view is more valid for the short run than for the long run.
d. classical in nature, and that her view is more valid for the short run than for the long run.
b
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Keynesian economists ________
A) observe that prices are perfectly flexible B) believe that the classical dichotomy never holds C) believe that only the interaction between savings and investment affects the real interest rate D) all of the above E) none of the above
With sticky nominal wages an unexpected decline in aggregate demand can be expected to cause.
What will be an ideal response?
A budget deficit occurs when government expenditures are greater than tax revenues.
Answer the following statement true (T) or false (F)
In the long run, the price level in an economy is determined solely by:
a. the aggregate demand curve. b. the amount of cyclical unemployment in the economy. c. the long-run aggregate supply curve. d. the short-run aggregate supply curve. e. the actual output level.