Keynes was motivated to create a macroeconomic theory different from classical theory because
A) he believed in government intervention in the economy.
B) he believed in the idea of the invisible hand.
C) monetary policy was more important than the classicals acknowledged.
D) classical theory was inconsistent with the data in the Great Depression.
D
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Mutual interdependence means that
A) all firms are price takers. B) each firm sets its own price based on its anticipated reaction by its competitors. C) all firms collaborate to establish one price. D) all firms are free to enter or leave the market.
A firm that faces a high-demand period followed by a low-demand period must determine all of the following for peak-load pricing except which one?
A) long-term peak quantity B) long-run capacity C) short-term off-peak price D) short-term peak price
What is projected to be the greatest source of US electricity production by 2040?
a) Coal
b) Natural Gas
c) Nuclear
d) Solar
e) Wind
Which of the following will discourage investment?
a. well-defined property rights b. monetary instability c. a low and steady rate of inflation d. low tax rates