Multiple Choice
Which of the following did Keynes think was a macroeconomic problem?
A) The economy can tend toward an equilibrium level of output that is below the potential level.
B) The economy tends toward a potential level of output that is below the equilibrium level.
C) The economy makes the potential and equilibrium levels of output equal.
D) The economy can be pushed below the equilibrium level of output by fiscal policy.
Correct Answer:

Verified
Correct Answer:
Verified
Q103: Suppose transfer payments and autonomous taxes both
Q104: Which of the following is NOT a
Q105: Suppose the MPC equals 0.75 and G
Q106: Assume autonomous net taxes rise by $500,
Q107: Assume that initially G is $100 and
Q109: Assume autonomous net taxes fall by $300,
Q110: Exhibit 11-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-4
Q111: Which term refers to the rate of
Q112: Exhibit 11-2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt="Exhibit 11-2
Q113: Which of the following fiscal policies will