According to Keynes, the economy could become stuck at a low income level if:
A. declines in aggregate supply are not accompanied by declines in aggregate demand.
B. declines in aggregate demand are not accompanied by declines in aggregate supply.
C. aggregate demand and aggregate supply are independent of one another.
D. declines in aggregate demand and aggregate supply reinforce one another.
Answer: D
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Other things the same, technological progress raises the price level
a. True b. False Indicate whether the statement is true or false
In the long run, changes in aggregate demand will affect the level of Real GDP (but not the price level) in a self-regulating economy
Indicate whether the statement is true or false
Corporate profits are
A) taxed at too low a rate. B) taxed only when a stockholder sells his or her shares of stock. C) taxed twice—once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends. D) taxed three times—once by the corporate tax system, again by the personal tax system, and again as capital gains.
Human capital is a combination of inborn and acquired skills, talent, and knowledge.
Answer the following statement true (T) or false (F)