Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 15 pizza each week, what is the maximum number of magazines can he buy?

According to the Keynesian view, the prolonged unemployment of the Great Depression

a. was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment. b. was surprising because Keynesians believed that lower interest rates would direct the economy to full employment. c. resulted because the total expenditures on goods and services were less than the full-employment rate of output. d. resulted because the federal government ran large budget deficits during the 1930s.

Over time, people have come to rely more on market-produced goods and services and less on goods and services they produce for themselves. For example, busy people with high incomes, rather than cleaning their own houses, hire people to clean their houses. By itself, this change has

a. caused measured GDP to fall. b. not caused any change in measured GDP. c. caused measured GDP to rise. d. probably changed measured GDP, but in an uncertain direction; the direction of the change depends on the difference in the quality of the cleaning that has resulted.