A Keynesian model that is consistent with fully flexible wages and prices is based upon the notion of
A) cooperation failures.
B) coordination failures.
C) collaboration failures.
D) decreasing returns to scale.
B
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The table above presents the production possibilities frontier for a nation. Using the information in the table, moving from possibility C to B means that
A) 4 units of capital goods are given up to get 55 units of consumption goods. B) 2 units of capital goods are given up to get 55 additional units of consumption goods. C) 4 units of capital goods are given up to get 10 additional units of consumption goods. D) 4 units of capital goods are given up to get 45 units of consumption goods. E) 2 units of capital goods are given up to get 10 additional units of consumption goods.
A look at the historical data indicates that velocity for M1
A. has been more variable than the velocity for M2, but both have been fairly constant for the past 65 years. B. and M2 have both trended downward, but velocity for M2 has been more erratic than velocity for M1. C. has been fairly constant for the past 65 years, but velocity for M2 has trended downward. D. has trended upward in the past 65 years, but velocity for M2 has been more constant.
Using the market for loanable funds, which of the following has the potential to raise the real interest rate?
A) an increase in the demand for loanable funds B) an increase in the quantity of loanable funds demanded C) an increase in the supply of loanable funds D) an increase in the quantity of loanable funds supplied
Refer to the tables. Opportunity costs of producing military goods are:
A. increasing in Duckistan but constant in Herbania.
B. constant in both Duckistan and Herbania.
C. larger in Duckistan than in Herbania.
D. smaller in Duckistan than Herbania.