Keynes and his followers believed that
A) the economy could not operate at any level of real Gross Domestic Product (GDP) less than full capacity.
B) capitalism was one economic system that guaranteed full employment.
C) wages and prices in the short run were flexible.
D) there was no guarantee that a capitalist economy would reach a full employment equilibrium.
D
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What is the opportunity cost of economic growth?
A. Investment in the current time period B. Improved technology in the current time period C. Capital goods in the current time period D. Consumption in the current time period
Suppose that for the nation of Calliope, the debt-to-GDP ratio is 325%, the average annual growth rate is 1.1%, the average inflation rate is 0.5%, and the average nominal interest rate is 2.2%
Based on this information, determine if fiscal policy is sustainable in Calliope, and if not, what the primary budget deficit would have to be to make fiscal policy sustainable.
The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called
A) coincidence. B) co-movement. C) correlation. D) coexistence.
A sudden fall in the market demand in a competitive industry leads to
a. A short run market equilibrium price lower than the original equilibrium b. A market equilibrium price lower than the short run price c. New firms entering the market d. All of the above