One of the major insights by economist John Maynard Keynes about production was that:
A. government spending needs to be kept in check in order for the economy to operate efficiently.
B. household spending patterns don't really influence the health of the economy.
C. firms may not produce all they can at a given price, but what they can sell.
D. firms generally produce as much as they can at a given price.
Answer: C
You might also like to view...
If the inflation rate is 2.5 percent and the nominal interest rate is 10 percent, then the real interest rate is
A) 2.5 percent. B) 7.5 percent. C) -2.5 percent. D) -7.5 percent. E) 12.5 percent.
Aggregation is important because it allows many individual variables to be combined into one larger whole
a. True b. False
The ________ is a rule of thumb that estimates the frequency of an event by the ease with which it is possible to summon examples from memory.
A. availability heuristic B. adaptive rationality standard C. Weber-Fechner law D. representative heuristic
A bank that has $10,000 in excess reserves can extend new loans up to a maximum of:
A. $1,000. B. $9,000. C. $10,000. D. $100,000.