While the classicists believed that both velocity and output are stable, Keynesians believe:
A. velocity is stable and output is variable.
B. velocity and output are both variable.
C. output is stable and velocity is variable
D. the same as the classical economists that both output and velocity are stable
Answer: B
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The suggestion that people are "satisficers" is similar to the view that people
a. are wealth-maximizers. b. exhibit "bounded rationality." c. go to a lot of trouble to weigh costs and benefits before choosing a course of action. d. change their minds often.
Suppose a basket of goods and services has been selected to calculate the CPI and 2009 has been selected as the base year. In 2007, the basket's cost was $64; in 2009, the basket's cost was $68; and in 2011, the basket's cost was $70 . The value of the CPI in 2011 was
a. 97.14. b. 100.10. c. 102.94. d. 109.38.