Refer to the graph shown. Initially, the market is in equilibrium where the demand curve intersects S0. In the initial equilibrium, producer surplus is equal to:

The process where financial intermediaries create and sell low-risk assets and use the proceeds to purchase riskier assets is known as

A) risk sharing. B) risk aversion. C) risk neutrality. D) risk selling.

Why is persistent unemployment a possibility in the Keynesian model but NOT in the classical model?

A. The Keynesian model assumes that nominal wages are inflexible downward. B. The Keynesian model assumes that people work for motives other than those of earning an income for themselves and supporting a family. C. The Keynesian model assumes that workers can lose their jobs to foreign competition during economic downturns. D. The Keynesian model assumes that the level of real GDP is inflexible.