According to the Keynesian view, the prolonged unemployment of the Great Depression:
a. was surprising because Keynesians believed that wage rates would decline and direct the economy to full employment.
b. was surprising because Keynesians believed that lower interest rates would direct the economy to full employment.
c. resulted because the total expenditures on goods and services were less than the full-employment rate of output.
d. resulted because the federal government ran large budget deficits during the 1930s.
Question 2
Absolute advantage is the ability of a country to produce a good with ________ than another country.
a. a lower opportunity cost
b. a higher opportunity cost
c. fewer resources
d. more resources
