Keynesian economics:
a. affirms the classical economists' basic premise concerning competitive markets.
b. believes that monopolies and unions tend to be permanent fixtures in our economy and the prices they create tend to be flexible, at least downwardly.
c. emphasizes the possibility that an economy can never be in equilibrium at less than full employment.
d. prefers to emphasize aggregate supply over aggregate demand.
e. believes that unemployment results when aggregate demand is insufficient to reach a full-employment level of real GDP.
e
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The National Banking System under the Bank Act of 1863 created a banking system comprised of a mixture of
(a) special state charters. (b) nonchartered private banks. (c) free banks. (d) all of the above.
Figure 5-6
In Figure 5-6, a shift in the budget line from AC to AB indicates
a.
the price of wine coolers has risen.
b.
income has increased.
c.
the price of beer has fallen.
d.
the price of wine coolers has fallen.
e.
All of the above are correct.
Let us suppose Harry's, a local supplier of chili and pizza, has the following revenue and cost structure:Total Revenue$3,000 Per WeekTotal Variable Cost$2,000 Per WeekTotal Fixed Costs$2,000 Per Week
A. Harry's should shut down in the short run but reopen in the long run. B. Harry's should stay open in the short run. C. Harry's should shut down in the short run. D. Harry's should stay open in the long run.
Minimizing average total cost always leads to the maximization of total profit.
Answer the following statement true (T) or false (F)