"A lower price level may lower the interest rate, but investment demand may not respond to this." This is a statement a __________ economist might make as an explanation of why the economy __________ pull out of a recession
A) Classical; will
B) Classical; may not be able to
C) Keynesian; will
D) Keynesian; may not be able to
D
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What is the difference between wealth and income?
What will be an ideal response?
The natural rate of unemployment is fixed and unchanging
Indicate whether the statement is true or false
Democracy tends to push politicians toward the ideal point of the ______ voter.
A. median B. first C. final D. representative
To induce an agent to work hard, a principal may offer the agent a bonus, in other words, an extra payment if a performance target is hit. Suppose that the agent's performance is affected by factors beyond the agent's control, for example umbrellas are demanded more on a rainy day. Under what conditions may the bonus not induce the agent to work harder?
A) The agent is very risk averse. B) The agent is very risk loving. C) The agent is risk neutral. D) The principal is risk neutral.