According to John Maynard Keynes:
a. aggregate expenditures (demand) can be forever inadequate to achieve full employment.
b. aggregate output (supply) can be forever inadequate to achieve full employment.
c. the economy would automatically adjust to full employment in the long run.
d. neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.
a
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Tying is a form of price discrimination in which one good called the ____ is tied to a second good called the ____.
Fill in the blank(s) with the appropriate word(s).
Under a fixed exchange rate system, if the inflation rate in the United States is 0 percent a year and the inflation rate in Australia is 5 percent a year, then the U.S. real exchange rate will
A) may increase or decrease. B) decrease 5 percent a year. C) remain constant. D) increase 5 percent a year.