Economists who believe in activist policy making argue that
A) only planned changes in the money supply impact the economy.
B) only increases in the minimum wage levels improve economic well-being.
C) decreases in aggregate demand definitely impact the economy in the short run.
D) decreases in aggregate demand impact the economy only in the short run.
C
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Early Keynesians concluded that the quantity of money was not important because they assumed
a. low interest elasticity of money demand and high interest elasticity of the demand for output. b. high interest elasticity of money demand and low interest elasticity of the demand for output. c. high interest elasticity of money demand and high interest elasticity of the demand for output. d. both low interest elasticity of money demand and of the demand for output.
The substitution effect can be measured holding ________ constant
A) income B) utility C) the price of one good D) the price of all goods