Which of the following explains why Keynesian economics lost influence in the 1970s?
A. A change in the how the Federal Reserve was constructed
B. The damaging effects of inflation
C. A crash in the stock market
D. An increase in the marginal tax rate
Answer: B
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The data in the table above give two points on the demand curve for pizza. Using the midpoint method, when the price of a pizza falls from $10 to $9, what is the percentage change in price?
A) 8.2 percent B) 15.5 percent C) 10.5 percent D) 5.0 percent E) 1.0 percent
The crowding-out effect occurs because an increase in government spending _____ interest rates, causing _____ to fall
Fill in the blank(s) with correct word
At the equilibrium level of output Ye (in an open economy with Government), which of the following statements is most correct?
(a) S + T + M = I + G + X. (b) AE = C + I + G + NX. (c) AE = C + I + G + X - M. (d) All of the above are true.
Which of the following sequences is most likely to happen when a market is profitable in the short-run?
a. News about profitability spreads; more firms enter the market; supply increases; equilibrium price decreases. b. News about profitability spreads; equilibrium price decreases; more firms enter the market; supply increases. c. More firms enter the market; news about profitability spreads; equilibrium price decreases; supply increases. d. More firms enter the market; supply increases; equilibrium price decreases; news about profitability spreads.