In the traditional Keynesian model, an increase in government spending leads to all of the following EXCEPT
A) a higher price level. B) an increase in aggregate demand.
C) an increase in consumption. D) higher real GDP.
A
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According to the scenario above, in which of the following groups are all the people cyclically unemployed?
A) Jung B) Darrelo C) Jung and Rita D) Jung and Thorton E) Thorton
Ceteris paribus, in a closed economy, if consumers become more optimistic ________
A) autonomous consumption would decrease B) the equilibrium interest rate should increase C) saving should increase D) all of the above E) none of the above
Economists study poverty and income inequality to answer which of the following questions?
a. What are people's wages? b. How does labor-force experience affect wages? c. How much inequality is there in society? d. How do people adjust their behavior due to taxation?
According to rational expectations theory, which of the following is the best approach to lower the inflation rate?
A. preannounced stable government policies B. unpredictable government policies C. first predictable and then unpredictable government policies D. None of these.