For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase

New Keynesian theories of efficiency wages imply

a. voluntary unemployment. b. real wage rigidity. c. changes in unemployment represent changes in the natural rate of unemployment. d. market clearing in the labor market in the long-run. e. None of the above

The big-push strategy, if successful, triggers

a. capital flight b. a cluster of interrelated investments c. an entrepreneurial surge in the economy d. forward linkage e. arbitrage