Which of the following is FALSE?
A. The classical economists relied on market forces to create full employment.
B. Keynes advocated an active government role for curing a recession.
C. Keynes suggested that full employment was a "rare and short-lived occurrence".
D. The classicals believed demand created its own supply.
D. The classicals believed demand created its own supply.
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Which of the following schematics most accurately represents economic fluctuations during a business cycle?
A) Shock -> Spending response by households and firms -> Multiplier effect -> Change in real GDP B) Shock -> Multiplier effect -> Spending response by households and firms -> Change in real GDP C) Shock -> Multiplier effect -> Change in real GDP -> Spending response by households and firms D) Shock -> Change in real GDP -> Spending response by households and firms -> Multiplier effect
Of the following, who would probably have the highest income?
a. a couple, both of whom have high school educations and work at WalMart b. a husband who has a high school degree and a middle-management job and his wife, who is a full-time mother c. a couple, both of whom have high school educations; he is a high school teacher and she is a librarian d. a husband who has a college degree and is a high school teacher and his wife, who has an MBA and works as a insurance company executive e. a couple, both of whom have college degrees and are high school teachers