Which of the following statements best reflects Keynes' view of the aggregate supply curve?
A. It tends to be vertical, because the economy naturally tends toward equilibrium positions of full employment.
B. It tends to be upward sloping (but not vertical), because as we try to produce more output out of our given resources, some labor has to work overtime at higher pay, driving up costs and prices.
C. It tends to be horizontal during periods when substantial amounts of resources are unemployed.
D. It tends to slope downward and to the right reflecting people's natural tendency to postpone purchases when they lose their jobs.
C. It tends to be horizontal during periods when substantial amounts of resources are unemployed.
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A rational choice is one that
A) must be made with perfect information. B) is made in the social interest rather than the self-interest. C) creates no costs for the decision maker. D) always turns out for the best for the decision maker. E) uses the available resources to most effectively satisfy the wants of the person making the choice.
In 1995–7, tax revenue as a percent of GDP
(a) was roughly equal between developing and developed countries. (b) was a few percentage points higher for developed than for developing countries. (c) was a few percentage points lower for developed than for developing countries. (d) was much higher (approximately double) for developed countries than for developing countries. (e) was much higher (approximately double) for developing countries than for developed countries.
Money supply would expand if people chose to hold borrowed funds in cash rather than in checking accounts
a. True b. False Indicate whether the statement is true or false
Natural resources can be:
A. renewable. B. nonrenewable. C. Both of these are true. D. Neither of these is true.