According to Keynes
A. only consumer spending could get us out of a depression.
B. the problem during recessions was inadequate aggregate demand.
C. the key to investment spending was aggregate supply.
D. all of the statements are true.
B. the problem during recessions was inadequate aggregate demand.
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Can a monopoly make an economic profit in the long run? Explain your answer
What will be an ideal response?
Because a firm has implicit costs as well as explicit costs
A) its accounting profit is always less than its economic profit. B) its economic profit is usually the same as its accounting profit. C) its economic profit is usually less than its accounting profit. D) its economic profit is usually more than its accounting profit.
Refer to the table above. Once trade begins, a possible international price (i.e. terms of trade) for textiles in terms of grapes is
A) $5. B) 2/5. C) 2. D) 4/5.
Firm A has a higher marginal cost than firm B. They compete in a homogeneous product Bertrand duopoly. Which of the following results will NOT occur?
A. QA < QB B. Revenue of firm A < Revenue of firm B C. ProfitA < ProfitB D. PriceA < PriceB