"Market clearing" refers to the case where
A) the purchase and sale plans of buyers and sellers are fully coordinated.
B) quantity demanded equals quantity supplied.
C) there is neither a shortage nor surplus of a good.
D) all of the above.
D
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New Keynesians conclude that
A) appropriate activist policies will increase the length of cyclical fluctuations. B) appropriate activist policies will have an known effect on the length of cyclical fluctuations. C) appropriate activist policies can dampen cyclical fluctuations. D) none of the above.
Both Keynesians and supply-siders believe that tax cuts
a. will increase income by increasing aggregate supply. b. will increase income by increasing aggregate demand. c. will increase income but for different reasons. d. will increase income in the Keynesian model but decrease income in the Supply-side model.