The expenditure multiplier in the ISLM framework is smaller than that derived from the simple Keynesian model because
A) velocity is always assumed to be constant.
B) the economy is assumed to be in the liquidity trap.
C) the aggregate supply curve is assumed to be horizontal.
D) the LM curve is assumed to have a positive slope.
D
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Refer to Figure 9.6. As a result of this policy, consumer surplus will
A) fall to $15. B) fall to $2250. C) rise to $2500. D) fall to $5000. E) rise to $5000.
In the national income accounts, depreciation is called
a. "consumption of fixed capital." b. "negative investment." c. "diminished value." d. "loss due to wear."
Suppose both John and Bill can do two tasks. If John can do each of the two tasks faster than Bill, then there is nothing that Bill should do; John should do everything
Indicate whether the statement is true or false
Falling inequality has been a feature of the high-growth Asian economies due to land reform, free public education, free basic health care, and significant investments in infrastructure for communication, sanitation, and transportation
Indicate whether the statement is true or false