According to the Keynesian model, the short-run aggregate supply (SRAS) curve is horizontal when
A. there are unemployed resources and prices do not fall when aggregate demand falls.
B. real Gross Domestic Product (GDP) is at full capacity but prices are not flexible.
C. prices react to an aggregate demand shock but real Gross Domestic Product (GDP) does not.
D. there are no unemployed resources and wages do not change when prices change.
Answer: A
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The principle of comparative advantage was first explained by David Ricardo in the early 1800s.
Answer the following statement true (T) or false (F)
Total government expenditure as a percentage of GDP is lower in the United States than in Sweden
a. True b. False
Since the 1970s, the most common causes of recessions have been
A. problems in financial markets and negative demand shifts. B. negative supply shifts and inflation fighting. C. problems in financial markets and inflation fighting. D. negative supply shifts and negative demand shifts.
In 2007, approximately what percentage of people in the United States with private health insurance received it as an employer-provided benefit?
A. 35. B. 50. C. 88. D. 95.