According to Keynes, the level of economic activity is predominantly determined by the level of
A. Interest rates.
B. Unemployment.
C. Aggregate demand.
D. Aggregate supply.
Answer: C
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According to a model of intergenerational equity, if future generations are expected to be better off than the current generation, transfers should
A. go from the richer generation to the poorer generation. B. not be done at all. C. go from the poorer generation to the richer generation. D. be weighted by increases in the inflation rate.
Which of the following indicates that there is a shortage in the market?
A) Demand is rising. B) Demand is falling. C) Price is rising. D) Price is falling.
Jim and Fred are the only two cashiers employed at a retail store. Each of them works the same 40 hours per week and each can check out 30 customers per hour by manually entering the price of each product purchased into the cash register. The store owner replaces the old cash registers with new ones that automatically scan product prices into the register. With the new cash registers, Jim and Fred can each check out 60 customers per hour. Their average labor productivity as a team before the new cash registers were introduced was ________ customers per hour and ________ customers per hour after the new machines were installed.
A. 1,200; 2,400 B. 30; 120 C. 30; 60 D. 60; 120
Based on this graph, deficit spending usually ______.
a. ends before a recession ends
b. continues after the end of a recession
c. does not occur during a recession
d. ends before a recession starts