Multiple Choice
Which of the following is true?
A) The structural deficit changes over the business cycle.
B) MPS + MPC = 1.
C) At equilibrium expenditure, unplanned changes in inventory must be positive.
D) In the real business cycle model, there is no AD curve.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q7: The level of potential GDP<br>A) increases when
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
Q13: If the Fed increases the quantity of