Keynes believed that:
a. discretionary fiscal policy was needed to stabilize the economy
b. wages are not flexible particularly in a downward direction.
c. the economy could remain in a period of unemployment for a long time period.
d. all of the above.
d
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If it is possible to make a change that will help some people without harming others, then the situation is:
A. efficient. B. inefficient. C. unfair. D. fair.
The labor demand curve is downward sloping because as the real wage ________ the amount of labor hired ________
A) falls; decreases B) falls; increases C) rises; remains constant D) rises; increases
Which of the following is the study of economic policy recommendations?
a. positive economics b. law and economics c. microeconomics d. development economics e. normative economics
The real business cycle theory focuses on the impact that changes in long-run aggregate supply will have on the business cycle
Indicate whether the statement is true or false