Explain several of the key contributions of Keynes
What will be an ideal response?
Obviously, answers to this question could be quite long. Answers should include topics like: the importance of expectations, business cycle theory, the importance of aggregate demand in causing fluctuations, liquidity preference, and the concept of the multiplier.
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Refer to the figure above. This country has comparative advantage in
A) X. B) Y. C) both X and Y. D) Can't tell without more information.
Which of the following statements is FALSE about the issues faced by the government when contemplating a tax?
A) Consideration must be given to how tax rates relate to the amount actually received. B) Consideration must be given to how taxes influence market prices. C) Consideration must be given to how taxes influence equilibrium quantity. D) Consideration must be given to the amount of funds the government will be receiving from the transfer payments paid by the public to the government.
During inflationary periods
a. all prices rise at the rate of inflation. b. real wages must necessarily decline. c. some prices may fall. d. relative prices do not change.
Which of the following activities will not be included in the GDP of an economy?
a. Sam buying a toy car imported from China from a toy shop in Boston b. Jane paying a certain amount to Moe to mow her lawn c. Bob buying a pound of cherries to garnish the cakes made in his bakery shop d. Corey paying his landlord rent for his new apartment