Keynes thought that one macroeconomic problem is that an economy:
a. can tend toward an equilibrium level of output that is below the potential level
b. will move back to its potential after a business cycle on its own.
c. always operates at the potential and business cycles are created by government intervention.
d. can be pushed below the equilibrium level of output by fiscal policy.
e. can be pushed away from the potential if prices and wages are flexible.
b
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Under the Social Security program currently in existence
A) benefits are based on need. B) benefits are determined by whether or not one contributed to the system. C) benefits are provided to everyone who contributed to the system EXCEPT those under private retirement programs that provide an annual income in excess of $13,500. D) benefits are guaranteed to be no lower for future retirees than for current retirees.
If banks cannot lend all of their excess reserves:
a. the money multiplier increases. b. the money multiplier decreases. c. the money multiplier stays the same. d. the amount of loans by the bank increases. e. checkable deposits decrease.