"Non-market-clearing" approaches to macroeconomics include
A) the original Keynesian model, but not the New Keynesian model.
B) the New Keynesian model, but not the original Keynesian model.
C) the original and New Keynesian models.
D) neither the original nor the new Keynesian models.
C
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Full employment is considered a major economic goal because: a. specialization is not possible without full employment
b. economic growth can only occur when there is full employment. c. the opportunity cost of unemployment is lost production. d. profit maximization of firms can only occur when there is full employment. e. inflation will be lower when full employment is achieved.
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same. b. Demand for real goods and services to rise and M2 money supply to fall. c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same. d. Demand for real goods and services to rise and M2 money supply to fall.
Which of the following is not likely to be a government objective?
a) Increasing employment b) Increasing economic growth c) Increasing government spending d) Increasing the level of exports
The notion of business investment being related to interest rates is shown when interest rates are
A. higher because more projects (where businesses borrow capital to start new lines of business) are profitable. B. higher because people are less likely to buy expensive goods on installments. C. higher because people are more likely to buy expensive goods on installments. D. higher because fewer projects (where businesses borrow capital to start new lines of business) are profitable.