Keynesians believe that Select one
a. aggregate demand changes tend to induce aggregate supply changes, offsetting any effect from changes in government expenditures.
b. money wage rate adjustments will quickly eliminate unemployment.
c. the economy will normally operate at full employment.
d. change in business confidence can affect the amount of investment in the economy.
Answer: c. the economy will normally operate at full employment.
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In perfect competition, all the following situations arise except ________
A. firms produce an identical good or service B. each firm chooses the price at which to sell the good it produces C. firms can sell any quantity they choose to produce at the market price D. buyers know each seller's price
Refer to Table 10-1. What is Keegan's optimal consumption bundle?
A) 5 pita wraps and 0 bubble teas B) 3 pita wraps and 4 bubble teas C) 3 pita wraps and 3 bubble teas D) 4 pita wraps and 2 bubble teas