Within the Keynesian model, if the output of an economy is less than the full-employment level, then
a. a reduction in government expenditures will direct the economy back to full-employment equilibrium.
b. a reduction in wage rates and resource prices will quickly restore full-employment equilibrium.
c. a reduction in the real interest rate will soon restore full-employment equilibrium.
d. output will tend to remain below full-employment capacity unless aggregate expenditures increase.
D
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Gross Domestic Product in 2013 was almost five times larger than it was in 1960 but it is important to note that
a. none of the growth represented more output. b. measurement of output omitted any effect of inflation. c. the population grew substantially over the same time period. d. graphs of output were unable to display such growth.
The North American Free Trade Agreement established processes that have substantially reduced transborder pollution along the Mexico-U.S. border.
Answer the following statement true (T) or false (F)