In a closed economy, the goods market is in equilibrium when
A) Y = S + I + G.
B) C + S = I + G.
C) C + I = S + G.
D) Y = C + I + G.
D
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Unemployment caused by a recession is called:
a. structural unemployment. b. frictional unemployment. c. involuntary unemployment. d. cyclical unemployment
For economists, substitutes for laboratory experiments often come in the form of
a. natural experiments offered by history. b. untested theories. c. "rules of thumb" and other such conveniences. d. reliance upon the wisdom of elders in the economics profession.
When it comes to voting in a presidential election, we would expect, ceteris paribus,
A) a lower percentage of eligible voters will vote if the weather is bad and this makes it harder to get to the polls on election day (than would have voted if the weather was good). B) a higher percentage of eligible voters will vote if the weather is bad on election day (than would have voted if the weather was good). C) many people to vote who are rationally ignorant. D) a higher voter turnout in the North than in the South. E) a and c
Keynes called the money people hold in order to pay unforeseen or unexpected expenses the:
A. transactions demand for holding money. B. precautionary demand for holding money. C. speculative demand for holding money. D. store of value demand for holding money.