Economics

Why is persistent unemployment a possibility in the Keynesian model bu

Why is persistent unemployment a possibility in the Keynesian model but NOT in the classical model? A) The Keynesian model assumes that people work for motives other than those of earning an income for themselves and supporting a family. B) The Keynesian model assumes that workers can lose their jobs to foreign competition during economic […]

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Date: September 2nd, 2020

What is TRUE about government budget deficits and surpluses since 1940

What is TRUE about government budget deficits and surpluses since 1940? A) There have been more government budget surpluses than government budget deficits. B) The number of government budget deficits is about the same as the number of government budget surpluses. C) Balanced budgets have been more common than government budget deficits or government budget […]

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Date: September 2nd, 2020

Which of the following is likely to shift the credit demand curve of a

Which of the following is likely to shift the credit demand curve of an automobile manufacturer to the right, assuming all else equal? A) An increase in the real interest rate B) A plan to increase production and expand to newer markets C) A plan to decrease production and exit from existing markets D) A […]

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Date: September 2nd, 2020

Suppose total planned expenditures equal $20 trillion when the value o

Suppose total planned expenditures equal $20 trillion when the value of the price level is 100. If the price level drops to 90, total planned real expenditures will equal A) more than $20 trillion. B) $20 billion. C) less than $20 trillion. D) None of the above: Cannot be determined without additional information.   ANSWER […]

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Date: September 2nd, 2020

Identify the correct statement. A) Countercyclical monetary policy st

Identify the correct statement. A) Countercyclical monetary policy stimulates the economy during a recession by shifting the labor demand curve to the left. B) Countercyclical fiscal policy stimulates the economy during a recession by shifting the labor demand curve to the left. C) Countercyclical monetary policy slows down the growth rate of an economy during […]

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Date: September 2nd, 2020