While the classicists believed that both velocity and output are stable, Keynesians believe
velocity and output are both variable
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Which of the following would not be a consequence of an increase in the U.S. government budget deficit?
a. U.S. interest rates rise b. U.S. net capital outflow falls c. the real exchange rate of the U.S. dollar depreciates d. the U.S. supply of loanable funds shifts left
What is the main theoretical implication regarding the standard employer-based discrimination model?
A. Discrimination is not profitable. B. Discrimination can only occur in competitive labor markets. C. Discrimination can only occur if there are exactly two types of labor (e.g., white and black). D. Workers do not care if firms are discriminatory. E. Most firms are discriminatory.
From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have concluded that the:
A. Marginal cost of waiting is less than the marginal benefit of being served B. Marginal cost of waiting is greater than the marginal benefit of being served C. Management is exhibiting irrational behavior by not maximizing profits D. Management is making an assumption that other things are equal
The “isms”