Which of the following is NOT a reason why real GDP can be expanded beyond a level consistent with its long-run growth path in modern Keynesian analysis?
A) Higher prices induce firms to hire more workers.
B) The existing capital stock can be used more intensively.
C) Prices and wages are flexible, allowing for needed adjustments.
D) In the short run, existing workers can work more hours.
C
Economics
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If a bank had the reserve requirement of 10 percent and excess reserves of $2,000, the largest loan it could legally extend would be: a. $200
b. $1,800. c. $2,000. d. $20,000.
Economics
In the circular flow model, which of the following is considered a leakage?
a. investment spending b. business spending c. household saving d. total exports
Economics