Keynes’ law states that:
a. demand creates its own supply.
b. when there is supply there will be demand.
c. you can only supply what is demanded.
d. people create both supply and demand.
a. demand creates its own supply.
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Productive efficiency refers to
A. setting TR = TC. B. maximizing profits by producing where MR = MC. C. cost minimization, where P = minimum ATC. D. production at a level where P = MC.
In the above figure, the slope across the arc between b and d is
A) 1/2. B) 1/3. C) 5/3. D) 6/5.
Refer to Figure 5-3. The efficient quantity of medical services is
A) 400. B) 800. C) 1,200. D) > 1,200.
What is the main argument which explains why an increased public deficit financed tax cut may not result in increased consumption?
A) People will increase savings to "finance" debt repayment by future generations. B) People will increase consumption to "finance" debt repayment by future generations. C) Savings is determined by uncertain events, the timing of future illnesses and death. D) Savings is determined by certain events, the timing of future illnesses and death.