According to the Keynesian aggregate expenditures model equilibrium and full employment:
a. always occur at the same income level of real GDP.
b. may differ, but there is an automatic mechanism that directs the economy toward full-employment equilibrium.
c. could never occur at the same level of real GDP.
d. do not necessarily occur at the same level of real GDP.
d
You might also like to view...
Congressman Dearmark justified spending $3 million on a new entertainment complex in his district because it will create 450 new jobs for his residents. As a student of economics, you know that
a. this is a case of the "broken window fallacy.". b. this is a great use of taxpayer dollars. c. this policy diverts money from spending somewhere else in the economy. d. Both a and c are correct.
Why is there a shortage of donated human organs available for transplant?
A. The supply curve for human organs is horizontal at the current zero price B. The demand curve for organs is vertical at the current zero price C. The quantity supplied is greater than the quantity demanded at the current zero price D. The quantity demanded is greater than the quantity supplied at the current zero price