Within the Keynesian aggregate expenditure-output model, if an economy operates below full employment:
a. a reduction in wage rates and resource prices will soon restore full-employment equilibrium.
b. a reduction in the real interest rate will soon restore full-employment equilibrium.
c. an increase in the real interest rate will soon restore full-employment equilibrium.
d. the economy may remain below full employment unless aggregate expenditures increase.
d
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Guiding the market through strategic coordination of business investments to increase export market shares is known as
(a) development planning. (b) industrial policy. (c) shifting terms of trade. (d) all of the above. (e) none of the above.
Government policy to reduce unemployment and increase national output can be illustrated by an
A. outward shift of the aggregate demand curve caused by an increase in government spending. B. outward shift of the aggregate supply curve caused by a reduction in government spending. C. inward shift of the aggregate demand curve caused by an increase in government spending. D. inward shift of the aggregate supply curve caused by a reduction in government spending.
Comparisons of per capita gross domestic product (GDP) between countries:
A. provide an accurate gauge by which to judge living standards. B. provide information about both market and nonmarket productive capacities. C. do not necessarily provide a good measure of relative living standards. D. are misleading because GDP isn't always consumption plus investment plus government spending plus net exports.
The formula for average fixed costs is
A. q/TFC. B. ?q/?TFC. C. TFC/q. D. TFC - q.