Assuming the economy is in a recession, Keynesian economists predict that lower wages will shift the short-run aggregate supply curve rightward
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose there currently is an inflationary ga
A) Reduce government spending. B) Increase government spending. C) Reduce the nation's aggregate supply. D) nothing
Refer to Table 2-16. Finland has a comparative advantage in the production of
A) neither product. B) both products. C) lumber. D) cell phones.
It is estimated that a 10 percent inflation in the United States would bear a shoe-leather cost of approximately ________ percent of GDP
A) 15 B) 6 C) 2 D) 0.25
John Maynard Keynes described periods of irrational pessimism and optimism that affect the investment behavior of firms as animal spirits. When considering the investment behavior of firms, animal spirits can be thought of as changes in the
A) actual marginal product of capital. B) capital stock. C) expected marginal product of capital. D) user cost of capital.