In the Keynesian model consumption is primarily determined by __________ and investment is primarily determined by __________
A) the price level; income
B) income; the interest rate
C) income; the price level
D) the interest rate; income
B
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The aggregate demand curve shifts when any of the following factors change EXCEPT
A) monetary policy. B) fiscal policy. C) the price level. D) expectations about the future. E) foreign income.
Using the definition of unemployment, which of the following individuals would be unemployed?
A) A full-time student quits school, enters the labor market for the first time, and searches for employment. B) Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon. C) Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job. D) All of these individuals are unemployed.
Which of the following is closest to the economist’s definition of perfect competition?
A. The airline industry B. The soft drink industry C. The fishing industry D. Cellular telephone service
The quantity theory of money assumes that money supply and price level are the only variables in the equation of exchange that are free to fluctuate
a. True b. False Indicate whether the statement is true or false