Multiple Choice
The level of potential GDP
A) increases when the inflation rate rises.
B) rises and falls with the business cycle.
C) determines the location of the long-run aggregate supply curve.
D) changes when cyclical unemployment changes.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Keynesian economists believe that<br>A) the economy automatically
Q3: Suppose that a severe shock that decreases
Q4: The Keynesian aggregate expenditure model focuses on
Q5: Suppose disposable income increases from $11 trillion
Q6: At potential GDP<br>A) there is no unemployment
Q8: Which of the following is true?<br>A) The
Q9: The marginal propensity to consume measures<br>A) the
Q10: The impulse leading to business cycles in
Q11: Keynesians and monetarists believe that economic fluctuations
Q12: The growth rate of productivity is a