The income-expenditure identity is best paraphrased as
A) all spending generates income.
B) all profits are used for investment spending.
C) on average, consumers cannot save.
D) on average, government can spend no more than what it collects in income taxes.
A
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The new classical school holds that: a. macroeconomic equilibrium is achieved only through active government intervention. b. unemployment is only temporary, because the economy tends naturally toward equilibrium. c. rigid prices and wages prevent the economy from achieving equilibrium. d. macroeconomic equilibrium cannot occur as long as the aggregate supply curve isvertical
e. rational expectations result in involuntary unemployment and prolonged periods of macroeconomic disequilibrium.
Can the Fed control both the interest rate and the size of the money supply? Explain
What is the shape of the long-run supply curve in a constant-cost industry?
A. horizontal B. downward sloping C. vertical D. upward sloping
Clean air is an example of a public good.
Answer the following statement true (T) or false (F)