The "equilibrating mechanism," the reason the economy tends toward equilibrium in the simple Keynesian model, is primarily
A) autonomous but flexible prices.
B) production responses to unplanned inventory changes.
C) exogenous inventory changes.
D) endogenous price changes.
B
You might also like to view...
The more human capital workers have, the:
A. more productive they are. B. more technology they will require for their job. C. lower the value of their marginal product. D. less productive they are.
Crowding out occurs because lower interest rates discourage saving and make it harder to borrow
a. True b. False Indicate whether the statement is true or false
_____ is the price paid by the insured to sell the risk to the insurer, which must cover the expected payout if a disaster occurs
a. Insurance interest b. Insurance coverage c. Insurance bonus d. Insurance premium
An example of a positive statement is:
A) The rate of unemployment is 4 percent. B) A high rate of economic growth is good for the country. C) Everyone in the country needs to be covered by national health insurance. D) Baseball players should not be paid higher salaries than the president of the United States.