In the short run, the dominant effect of deficit reduction causes an
a. outward shift of the aggregate supply curve.
b. inward shift of the aggregate supply curve.
c. outward shift of the aggregate demand curve.
d. inward shift of the aggregate demand curve.
d
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Keynes believed that
a. perceived that declines in real wages caused by price-level increases would be resisted by labor, whereas an equivalent fall in the real wage from a money wage cut would be accepted. b. perceived that declines in real wages caused by price-level increases would be more readily accepted by labor than an equivalent fall in the real wage from a money wage cut. c. workers preferred employment stability to wage stability. d. would always be acceptable to labor. e. both b and c.
Alex's production is worth $60, Harry's is worth $40, Rob's is worth $40, and Julia's is worth $55 . They decide to combine their resources and produce together. For this to be a superadditive game, which of the following conditions must hold?
a. They should be able to produce more in groups of two than what they can produce together. b. Their combined production must exceed the total they can individually produce. c. Their resources must be perfect substitutes. d. Their resources must be perfect complements.