Economists before Keynes assumed that equilibrium GDP occurred
a. automatically.
b. only with the help of government stabilization.
c. if spending was generally greater than output.
d. only in socialist economies with central planning.
a
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Refer to the above figure. If the relevant aggregate demand curve is AD1, then the economy is experiencing
A) full employment. B) an inflationary ga
As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for bus rides (inferior good)?
a. The demand curve will shift to the left; the supply curve will shift to the left b. The demand curve will shift to the left; the supply curve will shift to the right c. The demand curve will shift to the right; the supply curve will shift to the left d. The demand curve will shift to the right; the supply curve will shift to the right