Keynesians:
A. accept the countercyclical policy of doing nothing, that is, allowing market forces to work.
B. believe that the level of aggregate demand in the 1930s was sufficient to generate full employment.
C. accept the fact that policymakers should eliminate inflation first before focusing on unemployment.
D. focus on increasing aggregate demand in order to stimulate the economy.
Answer: D
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Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly?
What will be an ideal response?
Economic models are
A) always based on laboratory methods similar to natural sciences. B) a simplified representations of the real world. C) used only in conducting experiments about how people behave. D) used in macroeconomic analysis but not in microeconomic analysis.
Rapid economic growth is important because it
a. makes some people richer b. eliminates scarcity c. makes the unemployment rate zero d. allows the average person to consume more goods and services e. reduces interest rates
Define equilibrium as it relates to markets. Describe the process by which a market reaches a new equilibrium. Include an appropriate diagram.
What will be an ideal response?