According to Keynes, there are three possibilities with respect to equilibrium GDP and full employment GDP.
(1) ___________________________________________________
(2) ___________________________________________________ and
(3) ___________________________________________________.
Fill in the blank(s) with the appropriate word(s).
full employment GDP is greater than equilibrium GDP; equilibrium GDP is greater than full employment GDP; full employment GDP = equilibrium GDP
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The principal way in which inflation imposes costs upon the members of a society is by
A) destroying the incentive to consume. B) increasing the cost of planning correctly. C) lowering wages relative to prices. D) making goods more scarce. E) raising the percentage of the population below the official poverty line.
The branch of economics which studies how households and firms make choices, interact in markets, and how government attempts to influence their choices is called
A) microeconomics. B) positive economics. C) normative economics. D) macroeconomics.
An inward-oriented strategy is designed to:
a. expand a country's export capacity. b. lower the production of capital goods. c. develop the domestic manufacturing sector. d. promote the consumption of imported goods. e. improve productivity in the domestic service sector.
If the domestic price is below the world price of a certain product, the domestic country will export the product.
Answer the following statement true (T) or false (F)