Author Question: Assuming the economy is in a recession, Keynesian economists predict that lower wages will shift the ... (Read 82 times)

Chloeellawright · **on:** Jun 30, 2018

Assuming the economy is in a recession, Keynesian economists predict that lower wages will shift the short-run aggregate supply curve rightward.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Explain why GDP was never intended to be a measure of social well being.

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

Answer to Question 1

False

Answer to Question 2

GDP is simply a measure of total production. It does not include many things which affect the quality of life. For example, it does not include an adjustment for changes in quality of products, underground economic activity, changes in leisure time, nonmarket transactions, or take into account desirable or undesirable social side-effects associated with production and consumption.