Keynesian analysis implies that potential output and price stability can be achieved if
a. the federal budget is balanced annually.
b. marginal tax rates are kept low so the incentive to produce will be strong.
c. aggregate demand is equal to the economy's full-employment rate of output.
d. current saving exceeds the level of investment.
C
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An increase in subway fares in New York City will boost your expenditures on subway rides if
A) the supply of subway rides is elastic. B) the supply of subway rides is inelastic. C) your demand for subway rides is elastic. D) your demand for subway rides is inelastic.
Competition forces firms to produce and sell products as long as the ________ to consumers exceeds the ________ of production
A) marginal benefit; marginal cost B) marginal cost; marginal benefit C) marginal benefit; marginal benefit D) marginal cost; marginal cost