Within the Keynesian aggregate expenditures model, if the economy is below equilibrium, then there will be:
a. an increase the demand for goods and services.
b. an increase in real GDP.
c. lower interest rates, which will stimulate aggregate demand and keep the economy at full employment.
d. a lower price level, which will quickly guide the economy to full-employment equilibrium.
b
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The founding of the U.S. FDIC was primarily in response to
A) serious inflation after the Civil War. B) the bank panic of 1907. C) the Great Depression. D) the Volker recession in 1981-1982.
The factor of production called "capital" refers to:
A. manufactured goods that are used to produce new goods. B. any piece of raw material that is used to produce goods and services. C. any input that's not a human being or dirt. D. the amount of money a firm has access in order to run its business.
One World View article is titled "Glaring Inequalities." Of the countries listed, the least inequality in the distribution of income is likely to occur in
A. Japan. B. Botswana. C. South Africa. D. United States.
Describe how the substitution effect and the income effect influence decisions
What will be an ideal response?