While the classical economists believed that both velocity and output are stable, Keynesians believe
a. velocity is stable and output is variable
b. velocity and output are both variable
c. output is stable and velocity is variable
d. on this one point only, that the classical economists are right: that both output and velocity are stable
e. at low levels of income both velocity and output are stable, but at high levels of income velocity becomes variable
B
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Since 1940, the U.S. government has experienced
A) twice as many annual budget surpluses as annual budget deficits. B) only one year with a budget surplus. C) about the same number of years with budget deficits as with budget surpluses. D) many more budget deficits than budget surpluses.
Which of the following statements is true of Malthus's theory?
A) Malthus suggested that fertility level of the population will remain constant over time. B) Malthus suggested that the life expectancy of the population will remain constant over time. C) Malthus suggested that in the long run, income levels will grow exponentially. D) Malthus suggested that in the long run, income levels will stay at subsistence.