As the price level falls and other things remain the same, real wealth ________ and ________
A) decreases; the short-run aggregate supply decreases
B) decreases; the quantity of real GDP demanded decreases
C) increases; aggregate demand increases
D) increases; the quantity of real GDP demanded increases
D
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If the investment curve is relatively vertical, the Keynesian conclusion is that the transmission mechanism has little effect on the economy
a. True b. False Indicate whether the statement is true or false
Which of the following would be an example of a principal trying to deal with a moral hazard problem?
a. The parents of an infant secretly place video cameras in their house before the baby-sitter arrives. b. An insurance company checks police records to determine if its policyholders have received traffic citations. c. An employer examines his workers' output on a daily basis. d. All of the above are correct.