In the Modern Keynesian Model the short run aggregate supply curve slopes upward. How could one explain the shape of the upward sloping? short-run aggregate supply curve by only focusing on the capital? input?
Answer: Existing machinery can be used longer hours.
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The theory of investment that emphasizes the roles of real interest rates and taxes is known as the
A) multiplier model. B) accelerator model. C) Q-theory of investment. D) neoclassical theory of investment.
The zero-lower-bound problem eliminates the ability of the central bank to use which of the following in implementing policy?
A) open market operations B) discount lending C) the federal funds rate D) the required reserve ratio
Perfectly competitive firms respond to changing market conditions by varying their
a. price b. output c. market share d. information e. advertising campaigns
Regarding the number of discouraged workers,
a. the Bureau of Labor Statistics follows rather loose criteria to classify them. b. they are included in the official unemployment measure. c. there is universal agreement among economists that they should be counted as unemployed d. they are also known as involuntary part time workers. e. no one knows for sure how many are there.