Within the framework of the Keynesian model,
a. changes in output rather than changes in prices direct the economy to equilibrium.
b. changes in prices rather than changes in output direct the economy to equilibrium.
c. changes in interest rates and resource prices will direct the economy to equilibrium.
d. the economy will continually be in equilibrium.
A
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Which of the following is true of the demand curve for a normal good? a. The shape of the individual demand curve for a normal good is necessarily linear
b. The slope of the individual demand curve for a normal good is necessarily positive. c. The shape of the individual demand curve for a normal good can either be linear or non-linear. d. The slope of the individual demand curve for a normal good can either be positive or negative.
The reporter on one broadcast network says 2011 GDP increased to an all-time high. Commenting on the same figure, a second reporter says GDP in 2011 was less than in 2010 . Which of the following explanations is consistent with the statements of both reporters?
a. The first reporter was referring to real GDP, and the second was referring to nominal GDP. b. The first reporter was referring to nominal GDP, and the second was referring to real GDP. c. The first reporter was referring to GDP as measured by the expenditure approach, and the second was referring to GDP as measured by the income cost approach. d. The first reporter was referring to GDP as measured by the income cost approach, and the second was referring to GDP as measured by the expenditure approach.