The Keynesian view that demand could fall short of production is more likely to hold true if

a) wages and prices are fully flexible
b) prices, but not wages, are full flexible
c) wages and prices are not fully flexible
d) wages, but not prices, are fully flexible


Ans: c) wages and prices are not fully flexible

Economics

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Ronald Coase is famous for the Coase Theorem, which is based on the premise that there is an economically efficient level of pollution reduction

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Economics

Which of the following would be most likely to increase the demand for downtown parking in a large city?

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Economics

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Economics

The theory of rational expectations concludes that

A. the public's expectations can influence the outcome of monetary policy, but not of fiscal policy. B. the public's expectations can influence the outcome of fiscal policy, but not of monetary policy. C. the public's expectations as to the effects of economic policies will tend to reinforce the effectiveness of those policies. D. by reacting in its self-interest to the expected effects of stabilization policy, the public will tend to negate the impact of those policies.

Economics