Author Question: Q: How many economists does it take to change a light bulb? A: All. Because then you will generate ... (Read 63 times)

jasdeep_brar · **on:** Jun 30, 2018

Q: How many economists does it take to change a light bulb?
A: All. Because then you will generate employment, more consumption, moving the aggregate demand curve to the right.
This joke represents the view of

A) classical economists.
B) economists who contend that money illusion never occurs.
C) Keynesian economists.
D) economists who conclude that wages and prices are very flexible.

Question 2

What information is provided by the aggregate demand curve?

What will be an ideal response?

sarahccccc · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

The aggregate demand curve relates total planned real expenditures to each price level. The price level is measured by the GDP deflator. The lower is the price level, the higher are total planned real expenditures, other things being equal.