Keynes argued that

a. irrational waves of pessimism cause decreases in aggregate demand and increases in unemployment.
b. irrational waves of optimism cause decreases in aggregate demand and decreases in aggregate supply.
c. changes in business and consumer expectations generally stabilize the economy.
d. All of the above are correct.


a

Economics

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The real wage rate measures

a. nominal wages after taxes b. what workers are paid in terms of this year's dollars c. what workers are paid in terms of purchasing power d. what workers have available for spending after paying their bills e. the number of dollars earned by workers

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If the price of grapes increases, total expenditures on grapes will decline if

a. there are few substitutes for grapes. b. the supply of grapes is inelastic. c. the demand for grapes is elastic. d. grapes are a normal good.

Economics

Frictional unemployment is the result of

What will be an ideal response?

Economics