Some economists believe that a positive aggregate demand shock to an economy with large amounts of excess capacity and unemployment does not necessarily cause an increase in prices. Economists who adhere to this belief are followers of
A) Keynesian economics.
B) Say's laws of economics.
C) classical economics.
D) supply-side economics.
A
You might also like to view...
What does the fact that U.S. students are falling behind other nations' students in math and science have to do with economic growth?
A) Nothing. People in the United States just don't like to fall behind in anything as a matter of pride. B) If U.S. students don't excel in math and science, the nation will see fewer plays written and fewer pieces of music composed. C) Better technology, a key to economic growth, depends largely on math and science skills. D) Math and science skills don't foster economic growth, but it takes math skills to calculate a nation's rate of economic growth.
During inflation, the optimal discretionary fiscal policy would be _____
a. to decrease taxes b. to increase government spending c. to decrease the reserve ratio d. to increase taxes e. to decrease the market interest rate
If I will receive a payment of $121 two years from now and the annual interest rate is 10 percent, the present value of the payment is:
A. $110. B. $146.41. C. $90. D. $100.
Our unemployment rate is compiled by the _________ and our consumer price index is compiled by the _________.
A. Department of Commerce; Department of Commerce B. Bureau of Labor Statistics; Bureau of Labor Statistics C. Department of Commerce; Bureau of Labor Statistics D. Bureau of Labor Statistics; Department of Commerce