Keynesians would recommend
A. Lower government expenditures when there is a shortfall in aggregate demand.
B. Lower taxes when there is excess aggregate demand.
C. Higher taxes when there is excess aggregate demand.
D. Reliance on the market rather than the government for adjustment when an undesirable level of aggregate demand occurs.
Answer: C
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The price of gold is often volatile because:
A. Demand is relatively inelastic so changes in supply have a large effect on price B. Supply is relatively elastic so changes in demand have a large effect on price C. Demand is relatively elastic so changes in supply have a large effect on price D. Supply is relatively inelastic so changes in demand have a large effect on price
The concepts of comparative advantage, specialization, and trade form a compelling argument in favor of:
A. self-sufficiency. B. protectionism. C. only exporting goods and not importing goods. D. free trade.