According to John Maynard Keynes:
a. aggregate expenditures (demand) can be forever inadequate to achieve full employment.
b. aggregate output (supply) can be forever inadequate to achieve full employment.
c. the economy would automatically adjust to full employment in the long run.
d. neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.
Question 2
According to public choice theory, why might government policy benefit only a narrow interest group?
a. If the benefits to the narrow interest group are relatively large, they have an incentive to invest a lot of money and effort in lobbying government.
b. If the costs of this policy are spread out among the general population, and are a very small burden for anyone person, then those paying the costs have little incentive to organize opposition.
c. Both a. and b. are correct.
d. None of the above is correct.
John Muir
John Richardson
This is the first portrait of George Washington, painted by John Gadsby Chapman. Washington’s right
In this 1900 cartoon, oil baron John D. Rockefeller holds the White House in the palm of his hand wh
John Gast, American Progress.
Classic Supply - Demand Curve