According to Keynes, once a system attains an economy-wide equilibrium
A) planned investment will be zero.
B) there may or may not be excess productive capacity.
C) the economy will be at full productive capacity.
D) planned consumption will be zero.
B
You might also like to view...
An observer of the economy notices that over the past 12 months the unemployment rate has fallen from 7.0 percent to 6.5 percent. During the same time, the rate of growth in real GDP has been positive. From this information we might conclude that
A) inflation is not occurring. B) an expansion is occurring in the economy. C) a recession is in progress. D) a trough in the business cycle will soon be reached.
Suppose that there is an improvement in technology in the market for iPhones. Which of the following is TRUE?
A) Supply will increase and the market clearing price will fall. B) Supply will increase and the market clearing price will rise. C) Demand will increase and the market clearing price will rise. D) Demand will increase and the market clearing price will fall.
How will an increase in lumber prices influence the home construction market?
a. The demand for newly constructed homes will increase. b. The demand for newly constructed homes will decrease. c. The supply of newly constructed homes will increase. d. The supply of newly constructed homes will decrease.
During the Great Depression of the 1930s, unemployment peaked at _____ percent.
A. 5 B. 10 C. 20 D. 25 E. 30 percent